Morning Briefing: Discovery Silver Closes Porcupine Acquisition, Collective Drills More High-Grade at Apollo
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Wednesday, April 16th.
Gold held steady yesterday on a fairly quiet trading day all around. It gained 4/10ths of a percent, closing at $3,240 / oz. Silver had similar moves, up 4/10ths to $32.29/oz. What was most interesting yesterday was the outperformance by the miners. Despite a relative quiet day in the precious metals, the precious metals miners, developers and some explorers saw big moves into new all-time or recent highs. The GDX gained 1% while the GDXJ 1.25%. And then, after market close, trade headlines between the US and China reared its head once again on the back of more stringent export news regarding semiconductors to China, and the precious metals market began moving once again when Asia opened late afternoon in the US. Gold is now currently up another $85 and silver touching $33/oz. The metals remain in overbought territory and pullbacks should be welcomed and constructive, but the world appears to be price-insensative at the moment.
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…Calibre Mining
Calibre is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Newfoundland & Labrador in Canada, Nevada and Washington in the USA, and in Nicaragua. The company recently announced a deal to merge with Equinox Gold. The transaction will create an Americas-focused diversified gold producer with a portfolio of operating mines in five countries anchored by two high-quality, long-life, low-cost Canadian gold mines, Greenstone and Valentine. You can learn more at https://www.calibremining.com/
And here’s what you need to know this morning…..
Collective Mining announced assay results for three holes drilled into the Apollo system. Two of the holes were designed to test the potential extension of the recently discovered first high-grade sub-zone, while the third hole was drilled into the early-stage Northern Gold-Silver Vein Zone located above and to the north of the brecciated Apollo system. The two holes drilled into Apollo’s sub-zone returned 263.85m of 3.1 g/t AuEq from a depth of 71.65m and included 114.5m of 5 g/t AuEq in hole D6. Hole D74 returned 137.7m of 2.94 g/t AuEq from a depth of 160.9m. The pilot drilling program designed to test the first modelled sub-zone has now defined an area of 180 metres of strike, by 70 metres in thickness and by 70 metres vertical with continuous high-grade mineralization. This sub-zone is still open in almost all directions and will be expanded as part of the current ongoing drill program. The drilling into the Northern Gold-Siler Vein Zone returned multiple intervals, including 1.65m of 20.81 g/t AuEq and 18.25m of 2.1 g/t AuEq. The Company currently has eight drill rigs operating as part of its fully funded 70,000 metre drill program for 2025. (NYSE: CNL) (TSX: CNL) News Release
Orezone Gold says Q1 gold production hit 28,688 oz and gold sales reached $82.5M for the quarter. Construction of the Stage I hard rock expansion remains ahead of schedule and on budget with first gold pour and commissioning on track for Q4 of this year. Completion of the Stage I expansion will mark a material transformation in the Bomboré operation, with gold production forecasted to increase by approximately 45% from current levels to 170,000-185,000 ounces in 2026. (TSX: ORE, OTCQX: ORZCF) News Release
Rua Gold provided an update on its gold-antimony exploration at the Auld Creek project in the Reefton Goldfield on the South Island of New Zealand. The latest drill results reported this morning were 2.1m of 1.25 g/t Au, 9m of 5.9 g/t AuEq and 1.25m of 48.3 g/t AuEq. Auld Creek has an inferred resource hosted by two ore shoots, Bonanza and Fraternal. The gold grades on the Fraternal shoot plunge to the south, current drilling is testing 80-100m below the current resource envelope, before pivoting to testing the northerly extensions of the Fraternal ore body. (TSXV: RUA) (OTCQB: NZAUF) News Release
West Point Gold shared their most recent drill results from the ongoing drill program at the Tyro Main Zone, Gold Chain Project, Arizona. Highlights included 22.86m of 3.34 g/t Au and 28.95m of 1.92 g/t Au. Tyro Main Zone remains open at depth, northeast towards Frisco Graben, and southwest. Assays are pending for an additional eight completed drill holes, and the drill program is ongoing. The H1 2025 drill program has been designed to provide the data necessary for a potential maiden resource from the Tyro Main Zone. (TSXV: WPG) (OTCQB: WPGCF) News Release
Discovery Silver has completed the acquisition of the Porcupine Operations near Timmins, Ontario from Newmont. Porcupine has produced approximately 70 million ounces of gold since 1910 and Discovery is looking to re-establish the area as a Tier 1 asset in the industry. Discovery has paid an affiliate of Newmont $200 million of cash and issued approximately 119.7 million Discovery common shares, resulting in Newmont owning an approximate 15.0% interest in the Company. In addition, the Company will pay to Newmont $150 million in deferred cash consideration to be paid in four annual payments of $37.5 million commencing on December 31, 2027. To fund the acquisition and expected capital expenditures and working capital requirements at Porcupine, and for general corporate and working capital purposes, Discovery has completed financings for $575 million. (TSX: DSV, OTCQX: DSVSF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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