Morning Briefing: Drill Results from Filo and Integra Resources

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

Today is Wednesday July 13th. 

Yesterday gold followed its recent routinized price journey through the night and into western daylight hours as the yellow metal ran from US$1931 per ounce to as high as 1944 before getting slammed down to 1936 right after Asia closed. The ensuing bounce took the price in London's paper market back up to 1944. That run-up occured in part during the London a.m. fix, indicating a strong demand from buyers on the LBMA. Fast-forward to the Comex open and gold was hammered hard back down to 1935 before bouncing and ultimately settling the afternoon Globex session at 1937. Silver's price journey looked a bit different. After trading up to 23.58 per ounce during the Asian daily physical silver trough-feeding, the price was slammed down to 23.22 mid-day during Comex trading. It managed to bounce and settle in the afternoon at 23.32. 

The Mining Stock Journal said that it believes the price action in silver reflects the banks trying to, quote-unquote, shake the tree and coerce paper silver selling to enable them to completely cover their short exposure to silver and likely go net long. It bases this theory on the fact that, as of the latest COT report, the banks have almost completely covered their net short exposure to paper silver on the Comex and the trend suggests that perhaps they may have a small net long exposure as of yesterday, which is the cut-off day for the Friday COT report. 

The mining stocks were marginally green yesterday. July tends to be the lowest volume month of the year for the precious metals sector, which means the stocks tend to drift lower. However, the newsletter believes now is the time investors should be adding to or starting positions in the mining stocks. It will explain in the next issue released Thursday afternoon.

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…Western Copper and Gold

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

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

Filo announced assay results from three holes testing extensions to the Aurora and Bonita Zones and the Gemelos target at the Filo del Sol Project in San Juan, Argentina. Hole 83 extended the Filo-Aurora trend 260m to the northeast with 1,131m at 0.57% CuEq including 210m at 0.80% CuEq. Hole 85 expanded the Bonita Zone 700m to the east with 879m at 0.47% CuEq from 320m including 8m at 7.09% CuEq and 456m at 0.53% CuEq. A shallow intermediate sulphidation breccia vein intersected at 18m depth in hole 85 is similar to the Maranceles veins which outcrop some 600m to the north, and the interval returned up to 1,100 g/t silver over a 50cm width and gold up to 12.05 g/t over 2m, upgrading this area, and the Maranceles veins, as high priority exploration targets. Filo has three holes underway between Aurora and Bonita. Filo (TSX: FIL) (OTCQX: FLMMF) news release

Integra Resources announced drill results from 20 additional holes for 1,009m from the stockpile program at the DeLamar Project in Idaho. Highlights included 111.25m grading 0.30 g/t gold and 17.38 g/t silver for 0.52 g/t gold equivalent in hole 47 and 39.6m grading 0.65 g/t Au and 20.91 g/t Ag for 0.92 g/t AuEq in hole 168. Integra said drilling continues to demonstrate excellent gold equivalent grade and intercept widths with strong continuity throughout the stockpile and backfill mineralized material. It has released 155 holes of the 321 completed during the 12,588m stockpile drill program. An updated mineral resource estimate for DeLamar is due in the September quarter. Integra Resources (TSXV: ITR; NYSE American: ITRG) news release

Timberline Resources published it initial mineral resource estimat for the lookout Mountain gold deposits in Nevada. The Mineral Resources are comprised of oxidized model blocks that lie within optimized pits at a cutoff grade of 0.005 oz Au/ton plus unoxidized blocks within the optimized pits at a 0.055 oz Au/ton cutoff. The resource now sits at two and a half million tons of .036 g/t gold for 93,000 oz of measured, 23Mt of .014 oz/ton for 330,000 oz indicated, and 7.3Mt of .011 oz/ton for 84,000 ounces gold. Timberline's exploration work at Eureka in recent years has been largely outside the resource area, but geologic modeling and extensive drilling at the adjacent Water Well Zone (WWZ) suggest that the two systems are related. Carlin type gold mineralization has been intercepted at more than 1,000 feet (300 meters) deep downdip from the Lookout Mountain deposit in the WWZ. That target remains open to the east and south. (TSXV: TBR)(OTCQB:TLRS) News Release

McEwen Copper reported drilling results from its Los Azules project in San Juan, Argentina. It said infill and other resource drilling completed since the cut-off date for its June PEA confirm good alignment of new assay results to the resource model prediction for the same area. Highlights included an Enriched zone of 398m grading 0.75% Cu in Hole 220 including a sub-interval of 124m grading 1.43% Cu. Drilling concluded on June 19 with 39,900m drilled in 138 holes. Drilling is due to resume in October to increase geologic certainty and delineate a Measured mineral resource estimate on the material expected to be mined in the first five years of operation, covering more than the payback period and other technical evaluations. McEwen Copper os 52% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), news release

Faraday Copper announced the results from six drill holes at its Copper Creek Project, in Arizona targeting the potential expansion of the open pit mineral resources. It said three of the reported holes demonstrate the potential for near-surface resource expansion between the Copper Prince and Mammoth open pit shells. Highlights included 101.31m at 0.45% copper and 6.69 g/t silver from surface, including 17.70m at 0.96% copper, 3.33 g/t silver and 0.12 g/t gold in hole 32 at the Pole breccia. Faraday said its focus in the third quarter will be on integrating and analyzing airborne magnetic, electromagnetic, drill core, geochemical and spectral data to rank and prioritize targets for a 20,000-metre Phase III drill program planned to commence in the fourth quarter. Faraday Copper (TSX:FDY) (OTCQX:CPPKF) news release

More production numbers continue to roll in this morning. Fortuna Silver reported the production of 93,500 gold equivalent ounces for the quarter, including just over 4,000 oz from the Sequela Mine, which saw its first gold pour in May. Amerigo Resources produced 13.6Mlbs of copper in Q2 with a cash-cost of $2.37 per pound. Orezone reported 35,000oz of gold were produced from the Bombore Gold Mine in the quarter while paying off more than $19M in loan principal and retaining a cash position of $32.3M. Orla Mining produced just over 29,000 ounces of gold from the Camino Rojo Mine in Mexico and remains on track for guidance of 100,000-110,000 oz by year end. The company currently holds $114.5M in the bank. 

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