Morning Briefing: B2Gold Takes Full Ownership of Gramalote

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

Today is Thursday September 18th. 

Last week gold trended lower again. On Thursday the price knifed through its 200 dma but bounced to close above it. The Mining Stock Journal noted that the gold price was steady overnight and the effort to push it below the 200 dma occurred during Comex paper gold trading hours. It added that, based on the weekly change in positioning in the COT Report, the selling was likely coming from hedge funds and CTAs, and the report showed that the banks reduced short and the hedge funds reduced long positions in both gold and silver. Friday gold launched off its 200 dma and closed the week at $1945. Silver has been trading below its 200 dma for 7 days. It also trended lower last week and was shoved below $23 on Thursday. But as with gold, silver had a big move higher Friday and closed the week at $23.39.  The Mining Stock Journal said that once again silver successfully endured an effort to get it below $23. At the risk of sounding like a broken record, the newsletter said the metals are starting to feel bullish. One signal supporting is the mining stocks. Despite the lower weekly prices of gold and silver, GDX rallied 3.4% last week, including a 2.4% move on Friday. The newsletter added that it appears the banks are working to reduce their short position in gold and silver, which historically more often than not is a bullish indicator.

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… Fireweed Metals

Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.

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

B2Gold announced it has entered into a purchase agreement with AngloGold Ashanti Limited to acquire AngloGold’s 50% stake in the Gramalote project in Colombia. B2 says the deal provides optionality to analyze a lower capital intensity, higher-return development opportunity and is accretive to B2 shareholders on a total gold resource per share basis. With the Transaction, B2Gold will add 2.11 million gold ounces of Indicated Mineral Resources and 0.74 million gold ounces of Inferred Mineral Resources to the Company’s consolidated Mineral Resource base. Based on the results of the 2022 Gramalote feasibility study, the contemplated larger scale project did not meet the combined investment return thresholds for development by both B2Gold and AngloGold. B2Gold plans to commence a detailed review of the Gramalote Project, including the facility size and location, power supply, mining and processing options, tailings design, resettlement, potential construction sequencing and camp design to identify potential cost savings to develop a smaller scale project. (TSX: BTO, NYSE AMERICAN: BTG) News Release

Coeur Mining says it has achieved several critical milestones at its major Rochester expansion project in Nevada, including the production of the first silver and gold ounces. Metal production from the new Stage VI leach pad and Merill-Crowe process plant leach began mid-month with initial doré expected to be poured today. The focus is now shifting to commissioning, ramp-up, and mine optimization initiatives as well as prioritizing several adjacent exploration targets located on Rochester’s prospective 69-square mile land package. (NYSE: CDE) News Release

Calibre Mining published the initial open pit Mineral Resource Estimate for its 100% owned Cerro Volcan Gold Deposit  located five kilometres from the Libertad processing facility. The Resource, which was not included in the Company’s 2022 Mineral Resource statement, includes 508,000 tonnes of Indicated Mineral Resource averaging 1.83 g/t, yielding 30,000 ounces of gold and 1,788,000 tonnes of Inferred Mineral Resource averaging 2.28 g/t, yielding 131,000 ounces of gold. Combined, this average 2.0 g/t gold open pit deposit represents another opportunity given its proximity to the Libertad processing facility with in-excess of one million tonnes of surplus capacity. Requisite environmental permitting initiatives are underway with production anticipated in 2025. (TSX: CXB; OTCQX: CXBMF) News Release

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