Morning Briefing: Bunker Hill Funding Secured; Banyan hits +6Moz
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Wednesday May 24th.
Gold sold off as the Asian physical markets were closing down for the afternoon and bottomed after the London a.m. fix at $1956 per ounce. But around 6:15 a.m. NY time gold's engines ignited and launched the price up to $1978 through the NYSE close, where it flat-lined into the afternoon Globex trading settlement. Silver followed a similar trading path as gold only, as usual, the path took much wider swings. Poor man's gold bottomed out at $23.25 per ounce, from where it launched up to $23.78 before dropping back to the high $23.50's and settling at $23.59.
The Mining Stock Journal said it was not clear what factors might have driven the trading action in the two monetary metals, although it appears that the debt ceiling debate in Washington may be starting to rattle the markets so perhaps hedge funds were using gold and silver futures as flight-to-safety assets. Though both metals were green from the day before, the mining stocks were lower in correlation with the stock market. The GDX declined 0.69%. After looking at some ratio charts yesterday, the Mining Stock Journal noted that, in relation to both the S&P 500 and the price of gold, the mining stocks in general are cheaper now than at any time in the last 22 years.
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….
Bunker Hill announced an upsized and improved $67 million project finance package with Prott Privae Resource Streaming and Royalty which will enable the completion of the Bunker Hill Mine restart and achieve first concentrate production by the end of 2024. The package consists of a $46 million multi-metals Stream expected to be funded in June 2023, and a commitment for a $21 million new debt facility that will be available for draw, subject to certain terms and conditions, for two years at the Company’s election. Including the previously funded $8 million Royalty Convertible Debenture, $6 million Series 1 Convertible Debenture, and $15 million Series 2 Convertible Debenture, Sprott Streaming’s total commitment to the Bunker Hill Mine restart would increase to $96 million. In addition to the financing, Teck has also exercised its option to acquire all of the zinc and lead concentrate production from Bunker Hill Mine for a 5-year period. (CSE: BNKR) News Release
Banyan Gold reported an updated Resource Estimate for the Aurex and McQuesten properties on its AurMac Property in Yukon, Canada. It now hosts an inferred resources of 312.9Mt grading 0.61g/t gold for 6.2Moz in three near/on-surface deposits: Airstrip, Powerline and Aurex Hill, an increase of over 2Moz from the 2022 estimate. Banyan has already drilled 15,000m more subsequent to this update so it looks like there will be more to come. The resource is reported at a cut-off grade of 0.25 g/t Au for the Airstrip and Powerline and 0.3 g/t Au for the Aurex Hill deposits, using a gold price of US$1,800/ounce. Banyan Gold (TSXV:BYN) (OTCQB:BYAGF) news release
Enduro Metals says they have reached a significant milestone in the Company's understanding of the Burgundy copper-gold porphyry discovery at the Newmont Lake Project thanks to the successful completion of the inaugural geological model. Burgundy is interpreted to sit in a 20km NE-SW structural corridor comprising a complex series of trans-arc geological structures believed to be the controlling feature for the copper-gold mineralization found in multiple locations along the trend. The new understanding has highlighted two additional areas of interest along the Copper Line. The first was identified by review of historical Assessment Reports which reported up to 21.5% Cu and 880.37g/t Ag on surface, approximately 5km southwest of Burgundy along the Copper Line. The second area of interest, the "Orange" prospect, is a gossanous prospect to the northeast of Burgundy. (TSXV: ENDR) (OTCQB: ENDMF) News Release
Discovery Silver announced results from 23 Feasibility Study drill holes on its Cordero silver project in Chihuahua, Mexico. These reserve expansion drilling holes will be incorporated in a Feasibility Study and resource update planned for the first half of 2024. Highlights included 41m grading 63 g/t Ag, 0.09 g/t Au, 1.2% Pb and 2.7% Zn for a 197 g/t AgEq in hole 688. Drilling in the South Corridor continues to demonstrate the potential to improve grade and convert waste to ore within the reserves pit. Drilling in the North Corridor confirmed the tenor of mineralization at Pozo de Plata diminishes to the northwest. Feasibility drilling is nearing completion following which drilling will test multiple targets identified by field programs. Discovery Silver (TSX: DSV, OTCQX: DSVSF) news release
Elemental Altus Royalties published its operating and financial results for the first quarter. The company hit a record revenue tag of $2.8 million, up 28% compared to Q1 2022, and record gold equivalent ounces of 2,016 ounces, which is up 76% compared to the same period last year. (TSXV: ELE) (OTCQX: ELEMF) News Release
McEwen Mining repaid $25 million of its senior secured debt to Sprott Resource Lending which means Sprott is no longer a lender to the company. Concurrent with the repayment , the senior secured debt was amended and restated in the amount of $40 million bearing monthly interest at 9.75% per annum, and a $15M promissory note was extinguished. As a result, McEwen Mining’s annual borrowing costs will decrease by about $2.2 million or 36%. The Company’s sole lender is now its Chair and Chief Owner Rob McEwen. The debt reduction was funded through the sale of McEwen Copper shares to Stellantis and Nuton. McEwen Mining (NYSE and TSX: MUX) news release
Copper Mountain Mining announced results from the first four drill holes of its 2023 exploration program at the Copper Mountain Mine, in British Columbia. Hole 897 intersected the highest-grade and most gold-rich, copper-gold mineralization yet discovered at New Ingerbelle and extended the mineralized zone 200m below the current Resource, with a highlight of 191m grading 0.45% Cu, 0.32 g/t Au, 0.41 g/t Ag) for a 0.66% CuEq including 104m grading 1.01% CuEq. The 2023 exploration program is designed to test seven target areas within the NW-trending Copper Mountain-New Ingerbelle mineralized corridor where multiple historical drill holes end in copper-gold mineralization and geophysical data suggests the mineralizing system extends well below the current known Resource. Copper Mountain Mining (TSX: CMMC) (ASX: C6C) news release
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