Morning Briefing: Ascot Resources Hit 1m grading 193 g/t Au and 41.8 g/t Ag

Welcome to Mining Stock Daily. Standing in for Trevor Hall, I’m Paul Harris.

Today is Thursday, July 14th.

The metals drifted sideways heading into Wednesday, biding time for the highly anticipated June CPI report. The headline announcement showed a worse than expected 9.1% year over year inflation number and, in response, paper gold was smashed down as much as $22 per ounce to $1705. But 15 minutes later gold shot like a Roman candle, running to $1745 over the next three hours before fading to settle at $1735. 

Silver put in a similar performance, shooting up from $18.80 per ounce to as high as $19.35 before settling at $19.11. The Mining Stock Journal said the initial response of the paper version of gold and silver is standard operating procedure, as most likely the banks dumped the first initial payload of paper metal contracts which was followed by an electronic flood of selling by hedge fund algos. Ditto for the upside impulse move that followed, as the chart shows all of the earmarks of rabid short-covering. 

The mining stocks reacted positively to the rally in the metals. The Amex Gold Bugs Index jumped 2.7% Wednesday and the GDX popped up 2.2%. The Mining Stock Journal said that it's possible there will be some more down-side pain short term, but all of the usual contrarian technical indicators suggest that an investable bottom is forming in the precious metals sector.

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…Integra Resources

Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.

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

Results season is nearly on us and companies are starting to release production results. Barrick Gold reported preliminary Q2 production of 1.04 million ounces of gold and 120 million pounds of copper. B2Gold reported production of 208,858oz. and Eldorado Gold reported 113,462 oz. all three companies say they are on track to meet their 2022 guidance. While this is all well and good, all eyes will be on the financials to gauge the impact of inflation and falling prices. News release

Ascot Resources announced a bonanza hit of 1m grading 193 g/t Au and 41.8 g/t Ag in hole 2393 within the first batch of assays from the emerging Sebakwe Zone from its 2022 exploration drill program at the Premier Gold Project in the Golden Triangle of British Columbia. This first batch of results featured six holes for 2,477m at Sebakwe, which is about 600m east of the Premier mill building. Encouraging visual indications of mineralization and structure have seen Ascot increase the drill program to 15 holes for 6,091m at Sebakwe, which it says is a compelling target for low-cost, accretive resource growth. Ascot Resources trades on the TSX under AOT and on the OTCQX under AOTVF. News release

Red Pine Exploration intersected high-grade gold mineralization in the Minto Mine Shear Zone during its 2022 Phase 1 exploration program at its Wawa gold project in Ontario, Canada. Gold mineralization has been confirmed in the extension of the Jubilee Shear south of the Parkhill Fault adding over 2.5km in strike length of known continuous gold mineralization to the Wawa Gold Corridor. It now has 6km of strike. Highlights included 4.72m grading 68.71 g/t gold including 1m grading 231.5 g/t. Red Pine Exploration trades on the TSXV under RPX and on the OTCQB under RDEXF. News release

Blackrock Silver hit with a 1km stepout drillhole beyond its April 2022 resource estimate boundary at its Tonopah West project in Nevada with an intercept of 70cm grading 702 g/t AgEq including a sub interval of 4,6m grading 211 g/t AgEq. The company said its 2022 step-out drill program has more than doubled the mineralized footprint of the vein system at Tonopah West. In-fill drilling has also encountered a shallow new zone of stockwork quartz-veins and breccias that could point to near surface potential for the southern portion of the property. Blackrock Silver trades on the TSXV under BRC. News release

Outcrop Silver & Gold reported the results from six core holes on the Naranjos structure at its Santa Ana high-grades silver project in Tolima, Colombia. Highlights included 1.54 metres grading 1,067 grams per tonne equivalent silver in hole 244. The Naranjos vein is a parallel vein between the Santa Ana vein system 350 metres to the east, and the Eldorado vein system 350 metres to the west. Thirteen shoots are now recognized on the property which have a cumulative strike providing over 2.8km of potential resource area to include in the maiden compliant resource to be reported before the end of 2022. Outcrop Silver & Gold trades on the TSXV under OCG and on the OTCQX under OCGSF. News release

That concludes today’s morning briefing.

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