Morning Briefing: Discovery Silver submits EIA for Cordero; Amalgamation News in the Junior Sector

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

Today is Thursday August 31st. 

Wednesday gold quietly drifted sideways overnight but jumped a bit at the LBMA a.m. price fix. It then shot up shortly after the Comex opened in response to much worse than expected economic reports, running from $1966 per ounce to as high as $1977 before being turned back by heavy Comex paper gold selling. Gold settled at $1970, up $5 from Tuesday. Silver was actually pushed lower overnight to as low as $24.56 per ounce. It drifted higher and then shot up with gold, jumping from $24.65 to $25.06, where it was victimized by heavy Comex paper selling to ensure that it did not close above $25. Silver settled at $24.64, safely below $25 and 13 cents lower than Tuesday. 

The Mining Stock Journal noted that the volatility in the metals, mostly to the upside right now, reflects an adjustment to the negative economic data and the expectation that the Fed will be forced to pivot. The mining stocks jumped higher in early trading, led by the silver stocks. But the miners sold off along with the metals,  with some closing down slightly and some closing up slightly. Trading for the rest of the week is expected to be a low volume affair which could lead to some 2-way price volatility.

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….

Outcrop Silver & Gold and Zacapa Resources have neutered into an amalgamation agreement to which a wholly-owned subsidiary of Outcrop will amalgamate with Zacapa and all of the issued and outstanding common shares of Zacapa. Following the amalgamation will immediately be exchanged for common shares of Outcrop on a four-for-one basis. Upon completion of the Transaction, it is expected that the shareholders of Zacapa will hold approximately 12% of Outcrop's issued and outstanding common shares. The board of Outcrop will remain the same. Outcrop trades on the TSXV with OCG. Zacapa Resources trade son the TSXV with ZACA. News Release

Discovery Silver submitted the Environmental Impact Assessment for its Cordeo silver project in Chihuahua, Mexico for evaluation. The submission is supported by comprehensive environmental and social baseline assessment work and outlines detailed plans for the development of Cordero. The Project is expected to have significant positive direct and indirect socioeconomic impacts at local, regional and national levels with an expected peak local workforce of over 1,000 employees, direct tax revenues of approximately US$1.2 billion and over US$4 billion of expected goods and services purchased locally within Mexico over its 18-year mine life as per the Preliminary Feasibility Study. (TSX: DSV, OTCQX: DSVSF) News Release

Aura Minerals announced a Feasibility Study for the Borborema open pit gold mine Project in Rio Grande do Norte, Brazil. Borborema will produce 65,000oz/y at an AISC of  $949 oz over an initial 11.3-year mine life. The Project yields a Net present value of US$182 million and after-tax IRR of 21.9% at a US$1,712 per ounce gold price. At US$1,900, these increase to US$262 million and 51.9%. Aura anticipates the commencement of full construction with an estimated budget of US$188 million. Borborema has 2.1Moz of Indicated resources and 393,000oz of Inferred, with Exploration upside. Dundee Corporation also elected to convert its 20% equity interest in Borborema into a 1.5% NSR on the first 1.5Moz of gold sold, and 1% on the next 500,000oz. Once the production threshold of 2Moz has been reached, the Royalty will be terminated. Aura Minerals (TSX: ORA) (OTCQX: ORAAF) news release

Lifezone Metals announced a drilling update on resource definition drilling at its Kabanga Nickel project in Tanzania. Infill and extensional drilling at the Tembo Zone to support a Resource estimate and Feasibility Study  was completed in July. Drilling comprised 23,748m in of 49. A further nine holes for 2,596m were drilled for metallurgical sampling and six geotechnical holes for 2,312m. Highlights included 41m at 2.07% Ni, 0.39% Cu, and 0.16% Co, (2.67% NiEq) in Hole 10. The current North Zone drilling programme is expected to be complete by mid-September 2023, after which focus will shift to a new drilling programme that has been developed for the currently untested zone between Tembo North and Safari, known as the Safari Link programme. Kabanga is owned jointly by Lifezone Metals, BHP and the Government of Tanzania. Lifezone Metals (NYSE: LZM) news release

Freegold Ventures reported more drilling results from its Golden Summit Project in Alaska where drilling has focused on the Dolphin Zone and expanding mineralization to the north and reducing the strip ratio. Drilling continues to expand upon the broad higher-grade zone found within the Cleary Hill Vein swarm and which results in a significant amount of higher-grade mineralization at depth. Highlights included 497.1m at 0.75 g/t Au in hole 9 including 72.3m at 2.3g/t. Freegold Ventures (TSX: FVL) news release

Thor Explorations announced drill results from the Makkosa gold deposit and the Sambara prospect at its Douta gold Project in Senegal. An infill drilling reverse circulation drilling program targeted the Inferred Resources within the optimised pit shells to convert them to Indicated Resources. Drilling returned 16m of 2.03 g/t gold. In addition, a diamond drilling program has been completed within the Makosa and Makosa Tail areas to obtain samples for detailed metallurgical test work. Highlights were 3m of 23.35 g/t Au and 8 m of 8 g/t Au. The Douta Gold Project encompasses the Makosa gold deposit which currently comprises a total resource of approximately 1.78Moz. Thor Explorations (TSXV: THX) News Release

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