Morning Briefing: Discovery Silver Acquires the Porcupine Gold Complex from Newmont

Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Trevor Hall.

Its Monday, January 27th.  

Gold flirted with $2,800/oz and its all-time high Friday, capping a strong week by the yellow metal. It remained strong and saw some selling from its inte-day high but was pulled down as the US stock market began to see reversals and hard selling throughout the day as well. This morning, there is panic selling in premarket indices, along with gold, due to news that a Chinese AI app overtaking US technology in regards to user downloads. We will be covering more of this story on MSD as the week progresses. Speaking of China, its gold imports from Hong Kong fell 84% from the previous month, dropping to the lowest since April 2022. Silver continues it downward trend, unable to reach and clear $32/oz. Despite having a strong day on Friday, silver bugs are hoping its 200 day moving average continues to support. 

We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor. 

This episode of Mining Stock Daily is brought to you by…Vizsla Silver. 

Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 375,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at ⁠https://vizslasilvercorp.com/⁠

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

Discovery Silver has entered into a definitive agreement to acquire the Porcupine mining complex near Timmins, Ontario from Newmont for total consideration of $425M. The deal consists of $200m in cash, $75M payable in common shares of Discovery Silver to Newmont, and $150M of deferred consideration to be paid in four annual cash payments of $37.5M commencing in December of 2027. To fund the transaction and provide liquidity in support of operating and growing the Porcupine Complex, Discovery has entered into binding commitments for approximately $555 million of financing , including $400 million related to royalty and debt agreements with Franco-Nevada and approximately $155 million from a bought deal public offering. The company says the acquisition establishes the company as a new Canadian gold producer with anticipated average annual production of over 285,000 ounces during the next 10 years and a total expected mine life of 22 years with substantial upside potential. (TSX: DSV, OTCQX: DSVSF) News Release

Elemental Altus Royalties noted the announcement by Allied Gold of their quarterly gold production of approximately 48,000 ounces of gold from Korali-Sud in Q4. Elemental Altus holds a 3% Net Smelter Return royalty on the first 226,000 ounces of gold produced at the Korali licenses, and an uncapped 2% NSR thereafter, in addition to multiple production-based milestone payments. The Company also expects to receive a payment of US$1 million, the first of four milestone payments, payable 90 days after the commencement of commercial production from the royalty area. (TSXV: ELE) (OTCQX: ELEMF) News Release

Orezone Gold provided results of additional drilling from the flagship  Bomboré Gold Mine. The new results are centered on the North Zone, with high grades intercepted below both the North Zone Footwall and North Zone Hill resource and reserve pits. Highlights included 2.55 g/t Au over 23m, 1.14 g/t au over 29.5m and 24.74 g/t Au over 2m. The company notes they are accelerating their exploration campaign and planning a comprehensive 30,000m drill program through this year. As part of the exploration campaign to test the broader size and scale of the Bomboré mineralized system, a second focus of the current drill program is to further delineate a number of higher-grade sub-zones within, and extending below, the current life of mine open pit resource and reserves. The Company believes that these higher-grade sub-zones may host the potential to transition into underground mining beneath the open pits in the future. (TSX: ORE, OTCQX: ORZCF) News Release

Collective Mining says they have commenced drilling at the San Antonio Project. The Company plans to drill a minimum of 2,500 metres and test three large gold-copper porphyry targets located within a well-defined 2.5-kilometer mineralized corridor. Diamond drilling has commenced at the Pound target where previous drilling by the Company in 2021 intercepted from surface 710 metres at 0.53 g/t gold equivalent (SAC-08) and 750 metres at 0.41 g/t gold equivalent. (NYSE: CNL) (TSX: CNL) News Release

Maritime Resources announced results from definition drilling at the Hammerdown Gold Project. Results reported this morning included 41.6 g/t Au over 6.3m and included 2m of 127.5 g/t. Other results were 11.1 g/t Au over 13.1m and 26 g/t over .7m. The company says the grade control drill program is providing additional geological information within the first year of proposed mining at the Hammerdown open pit project and is one of the final de-risking steps as they prepare for development. (TSXV: MAE) (OTC Pink: MRTMF) News Release

Vior Inc published new analytical results from its ongoing +60,000-metre drill program at its Belleterre Gold Project in Quebec's Belleterre Greenstone Belt. The ongoing drilling step-out program continues to confirm the lateral and vertical extension of Belleterre Vein # 12. Hole BV24-059 has intersected a new vein system located approximately 200 meters south of Veins # 12. The drillhole successfully intercepted high-grade gold mineralization with 11.6 g/t Au over 2.0 metres including 16.5 g/t Au over 0.5 metres In addition, drillhole BV24-048 targeted the vertical extension of Vein # 12to the south and returned 39.1 g/t Au over 0.5 metre. Those two intercepts confirm potential for a larger system deeper in the extension of the past producing Belleterre Mine. A total of 63 drillholes (23,320 metres of drilling) have been completed so far of which 7,900 metres were assayed. (TSXV:VIO) (OTCQB:VIORF) News Release

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