Morning Briefing: Drill Results from Arras Minerals, G2 Goldfields and GR Silver

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Thursday May 25th. 

Yesterday gold rallied a bit overnight and into the Comex open, trading up to $1988 per ounce, but was just decimated when the Comex went live. The price was smashed $28 in the paper derivatives market down to $1,959, where it settled in the afternoon digital trading session. Silver similarly traded sideways overnight but was demolished when the Comex opened, as it was given a broken elevator cable ride from $23.65 to $23.17 per ounce, which is where it settled in the afternoon. The Mining Stock Journal newsletter said that, in the absence of any news flow that might have triggered the recent declines in gold and silver, it would appear that this is a good old fashioned Commitment of Traders open interest liquidation and price management operation. The open interest in gold has dropped by 42,000 contracts since the last COT report. That's a material decline in o/i. Silver o/i has come down around 5,000 contracts. 

The newsletter added that both metals are now solidly below their respective 50 day moving averages. While this could end up being a 200 dma correction, more likely this pullback is nearing completion. The mining stocks were battered along with the metals and the stock market in general. The GDX dropped 2.3%, with silver stocks down 3-4%. Wednesday's action took the GDX below its 50 day moving average and into deep oversold territory. The newsletter expects the rest of this week to be subdued unless there's further negative developments on the debt ceiling negotiations.

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….

Arras Minerals announced assay results from five holes from ongoing drilling at the Beskauga copper-gold deposit and surrounding area in Kazakhstan. Highlights included 603.7m grading 0.24 g/t gold, 0.19 % copper, and 0.86 g/t silver for 0.40% copper-equivalent in hole 21, including 317.6m grading 0.55% CuEq. Consistent mineralization was seen for the entire length of hole 21 which further defines a high-grade core to the Beskauga deposit within a lower grade halo. Arras Minerals (TSX.V: ARK) news release

G2 Goldfields announced additional assays from ongoing drilling at the GHANIE ZONE at its OKO Project in Guyana. Ghanie now has a strike length in excess of 1 km. The most recent drill holes include highlights of 27m grading 6.5g/t Au in hole 55 at Ghanie Central, the deepest drill intercept to date in the central portion of the Ghanie, and 10.5m grading 10g/t at Ghanie North. The Ghanie Zone is the second significant discovery on the project and lies between the OKO Main Zone where it has a 1.1Moz of resources and Reunion Gold’s Block 4 discovery. G2 intends to release an updated resource estimate for OKO later this year. G2 Goldfields (TSXV: GTWO; OTCQX: GUYGF) news release

GR Silver Mining announced the first two step-out drilling results outside of the recently published Resource Estimate in the San Marcial Area at the Plomosas Project in Sinaloa, Mexico. Initial drilling is targeting the extension of the SE Area discovery silver mineralization style, 250m along strike, targeting identification of the mineralized contact zone at shallow depth. Highlights included 11.3m grading 584gt silver including 5.5m grading 1084gt in hole 2, a 50m step out to the southeast.  GR Silver Mining (TSXV: GRSL) (OTCQB: GRSLF) news release

Foran Mining provided final assay results from the 2023 winter drill program at the new Tesla target. The company says it has discovered significant new zones at the bottom of hole 10, where assays returned 3.5m of 6.76% CuEq. Foran's winter drilling expanded the footprint of the Tesla mineralization up-dip, down-dip and along strike in both directions, with thick intersections of massive to semi-massive and stringer sulphides intersected in all step-out and wedged holes. The upcoming 20,000m summer exploration drilling will focus on expansion drilling at Tesla and testing of high priority near-mine and regional targets. (TSXV: FOM) (OTCQX: FMCXF) News Release

Fortuna Silver says they have poured first gold at the Séguéla Mine, in Côte d'Ivoire. The first pour took place yesterday, May 24, as the mine transitions from commissioning to the ramp-up phase. The Séguéla Mine is expected to produce between 60,000 to 75,000 ounces of gold in 2023 at an all-in sustaining cost of between US$880 and $1,080 per ounce of gold. Séguéla now enters into the ramp-up phase where management plans to achieve nominal rate of production during the third quarter. Fortuna trades on the NYSE with FSM and on the TSX with FVI. News Release

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