Morning Briefing: Drill Results Reported from Summa Silver and Meridian Mining
Welcome to Mining Stock Daily. I am Trevor Hall. And I’m Paul Harris.
Today is Tuesday, May 3rd
The trading in gold and silver kicked off May with an inimical greeting card from the price management team, as gold was hammered $48 per ounce or 2.5% and silver received a 50 cent or 2.2% beating. Silver is back to the $22.50 level, which is where it was at the beginning of February. There were not any specific news or event triggers that warranted Monday's lashing of the metals. The task of pushing gold lower was facilitated by the fact that several large gold-buying eastern hemisphere countries were closed on Monday in observance of holidays, including China, Vietnam and Turkey.
While gold is still above its 200 day moving average, the Mining Stock Journal said that it looks like this might be a good old fashioned 200 dma price correction. The Mining Stock Journal did point out that the biggest fundamental driver of gold, negative real interest rates, continues to be deeply negative, something which will not be remedied with the scant 50 basis point hike in the Fed funds rate expected on Wednesday. In that regard, however, it pointed out that the precious metals sector is routinely terrorized ahead of and during and FOMC meeting week. The mining stocks were lower with the metals, as the GDX closed down 1.3%, though it managed to rally from well off of its morning lows.
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…Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Meridian Mining says they have drilled the broadest zone of copper-gold mineralization within Cabaçal's Northwest Extension with CD-106 returning 103.3m @ 0.6% CuEq from 23.7m, including 5.8m @ 4.3% CuEq from 80.0m. Results from CD-106 continue the positive pattern of results delivered from the cross-strike resource definition program in the CNWE and includes the high-grade structural overprint with intercepted gold veins grading up to 67.8 g/t Au over 0.40m. Meridian is also pleased to announce further positive infill drill results, within the CNWE and the Cabaçal Mine, results have returned broad zones of copper-gold mineralization with over printing gold veins hosting visible gold. Highlights there included 50.7 meters of .5% CuEq including 11.2 meters of 1.8% copper equivalent. Drilling is ongoing at Cabaçal with further results pending. Meridian Mining trades on the TSX with MNO and on the OTCQB with MRRDF. News Release
Summa Silver provided new silver and gold drill results from the Mogollon Property near Silver City in New Mexico. Highlights included 31m of 459 g/t silver equivalent, which included .5m of 6,311 g/t and 2m of 1,223 g/t silver equivalent in hole 5 where the company says total grade thickness through all mineralization is 14,233 g/t silver equivalent. This hole was a 270m step-out from previously reported hole 4 which returned 11.6 m of 450 g/t silver equivalent. The newly drilled mineralized zone at the Consolidated Extension target remains open to expansion in all directions. The Company anticipates a minimum of 25,000 m of drilling in 50 holes is necessary for a spacing of approximately 50 m between holes covering an area of approximately 500 x 300 m to publish its first resource estimate on this Mogollon property target. Summa Silver trades on the TSX V with SSVR and on the OTCQB with SSVRF. News Release
i-80 Gold announced results from the final hole drilled in the Phase 1, 2021, surface drill program focused on delineating the high-grade South Pacific extension horizon at its Granite Creek Property in Nevada. The South Pacific Zone is a new zone of high-grade gold mineralization located immediately north of the underground mine workings at Granite Creek. Highlights included 15.7m grading 16.3 grams per tonne gold in hole 18. In 2021, sixteen holes were drilled to test the SPZ, successfully defining multiple fault structures that are demonstrating continuity of mineralization over a strike length of about 600m and a dip length of about 250m. The SPZ is the priority target of the ongoing surface drilling and will be included in a resource update following the 2022 program. i-80 Gold trades on the TSX under IAU and on the OTCQX under IAUCF. News release
Ascendant Resources reported assay results from six metallurgical holes at the Venda Nova deposit of its Lagoa Salgada Project in Portugal. The scope of the program was designed to generate representative metallurgical samples to optimize the metal recoveries from the various ore types seen within the Venda Nova. Highlights included 109m grading 20.15% zinc equivalent and 78.5m grading 22.72% zinc equivalent. The company said the high-grade tenor of these results are expected to significantly increase the contained metal in the deposits. Drilling also identified a new subdomain within the massive sulphides characterized by a secondary enrichment blanket, rich in both copper and silver. Ascendant Resources trades on the TSX under ASND and on the OTCQB under ASDRF. News release
Cabral Gold released results from three diamond-drill holes in the southern part of the Central gold deposit within the Cuiú Cuiú Gold District in northern Brazil. Highlights included 9.6m grading 16.4 grams per tonne gold in hole 268 within fresh (unweathered), highly brecciated and altered basement intrusive rocks. The company said drilling suggests there is a distinct northwest-trending, steeply dipping, high-grade corridor, traced along strike for at least 100m, which contains multiple individual high-grade zones which follows the southwestern margin of the Central deposit in this area. Cabral Gold trades on the TSXV under CBR and on the OTC under CBGZF. News release
Alpha Exploration announced results from 14 of 19 reverse-circulation drill holes at the Aburna gold prospect at its Kerkasha Project in Eritrea. Highlights included 15m grading 5.85 grams per tonne gold in hole 5 at Hill 52 and 10m grading 5.24g/t in hole 8 at Celebration Hill. This is the first drilling on the Aburna prospect. The company said that now it has demonstrated possible economic grade mineralization is present, further drilling will focus on determining the strike extent and width of mineralization. Alpha Exploration trades on the TSXV under ALEX. News release
Group Ten Metals reported new intervals of nickel sulphide with palladium, platinum, rhodium, cobalt, copper and gold in a third tranche of drill results from the 14-hole resource expansion campaign completed at the Company's flagship Stillwater West project in Montana, USA. Hole 5 returned 400 metes of continuous battery and precious metal mineralization grading .3% nickel equivalent, which also included 13 meters of 3.33% nickel equivalent. The company says this is one of the widest intercepts ever recorded in the Stillwater district. Group Ten Metals trade on the TSX V with PGE and on the OTCQB with PGEZF. News Release
That concludes today’s morning briefing.
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