Morning Briefing: Drill results from Dundee Precious Metals and Orezone Gold

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

Today is Monday April 10th.

Last week gold rose 2.3%, or $28 for the week, to close at $2026 per ounce after hitting $2050 on Thursday. Gold was slammed pretty hard on Friday in European trading after Asia closed for the weekend, falling from $2038 to as low as $2016 before settling at $2023. Silver continues to impress, rising over $1 for the week and closing above $25 per ounce for the first time since late April 2022. It is up nearly 26% since March 8th. The Mining Stock Journal said that both gold and silver have become technically overbought based on the RSI and MACD indicators. The newsletter suggested that the precious metals could work off the overbought technical condition by moving sideways for a while or experiencing a corrective pullback. In addition, the Hulbert Gold Newsletter Sentiment Index has risen to a level that historically has preceded a short term trading top that is followed by a pullback. 

It added that the sentiment index has been fairly reliable contrarian indicator but it does not offer guidance on the timing of the next move. The mining stocks rose last week, with the GDX up 5.5%. The Mining Stock Journal said, like the metals, the mining stocks have become susceptible to a short-term pullback. The newsletter added that a pause or correction in the precious metals sector will help set-up the next move higher.

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….

Dundee Precious Metals reported new assay results from ongoing drilling at the Čoka Rakita prospect in eastern Serbia, which extends the deposit to the east and also confirms and extends the high-grade zone. Highlights included 71m grading 18g/t gold in hole 8, which also included 16m at 5.15g/t, 16m at 23.14 g/t Au in hole 5 including visible gold, 52m at 3.18 g/t in hole 6 and 58m at 4g/t in hole 8, which extended the high grade zone by 60m south of previous drilling and locally increased the overall thickness of the target to over 100m. Hole 7 expanded mineralization to the east by 120m. Čoka Rakita now measures 500m long, up to 300m wide and variable thickness from less than 20m in the margins to more than 100m. Dundee continues to advance a 40,000m infill and extensional drill program to support a maiden mineral resource estimate by year-end 2023 and plans to expand scout drilling activities on Umka and additional nearby targets. Dundee Precious Metals (TSX: DPM) news release

PolyMet Mining closed a rights offering and issued the full allotment of 92.6M shares at US$2.11 for proceeds of US$195 million. The proceeds have been used to repay all of PolyMet's unsecured and secured and convertible debt owed to Glencore and to fund its portion of NewRange Copper Nickel, a 50/50 JV the company entered into with Teck Resources which places PolyMet's NorthMet resource and Teck's Mesaba resource in Minnesota under single management. Glencore exercised its right in full and purchased 87.8M shares. Glencore now owns about 82.19% of the company. PolyMet Mining (TSX: POM) (NYSE American: PLM) news release

Freeman Gold announced an updated Resource Estimate on its Lemhi Gold Deposit in Idaho, which increased contained ounces by 24%, overall gold grade by 16% and the percentage in Measured and Indicated resources by 32%. The Measured and Indicated resource is now 30Mt grading 1 ("g/t") for 988,100 oz with another 234,700 oz in inferred. The resource is based on 81,497 m of drilling in 442 drillholes, using a 0.35 g/t cut-off and a gold price of US$1750 per oz. Over 90% of the resource is on patented claims. Freeman Gold (TSXV: FMAN) (OTCQX: FMANF) news release

Orezone Gold reported drill results from its ongoing oxide drilling at its Bomboré Gold Mine in Burkina Faso , including results from the Phase III resource definition program and drilling of exploration targets outside of the current resources along known mineralized trends. The results highlighted the potential to delineate additional oxide resources, supporting the Company’s goal of offsetting mine depletion. Oxide Drilling Highlights included 5m grading 30.86 g/t in hole 5287 and 1.75m grading 42.19 g/t in hole 1279. Orezone Gold (TSX: ORE, OTCQX: ORZCF) news release

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