Morning Briefing: Elemental Altus Provides Materially Higher 2024 Guidance
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Thursday April 4th.
On Wednesday gold closed at record high for the fifth consecutive day, with June gold closing in the afternoon at $2320 and spot gold closing the afternoon session at $2298. Silver was on fire again, closing up $1.07, or 4%, from Tuesday's afternoon settlement. The minings stocks were higher again in response to the move in the metals, though not as much as one might have anticipated. GDX jumped 2.2% but it felt like the miners should have staged an even bigger rally. That said, several silver stocks moved 10% to 15% yesterday. While financial media attributes the big move in the metals to the sharp sell-off in the dollar, in fact it's the rapid deterioration of underlying economic, financial and fiscal policy fundamentals that are causing the devaluation of the dollar and capital flight globally into gold and silver. The Mining Stock Journal lays out its analysis in this afternoon's new issue. Speaking of which, this week's issue will also have a couple of heavily beaten up junior microcap names that may soon have actionable events that trigger a huge move in these stocks. You can learn more about the newsletter an InvestentReserachDynamics.com
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… Arizona Sonoran Copper.
Arizona Sonoran Copper Company (ASCU:TSX) is focused on developing its brownfield copper project on private land in Arizona. The Cactus Mine Project is located less than an hour's drive from the Phoenix International airport. Grid power and the Union Pacific Rail line situated at the base of the Cactus Project main road. With permitted water access, a streamlined permitting framework and infrastructure already in place, ASCU's Cactus Mine Project is a lower risk copper development project in the infrastructure-rich heartland of Arizona.For more information, please visit www.arizonasonoran.com.
And here’s what you need to know this morning….
Elemental Altus royalties shared its guidance for 2023 this morning and it is materially higher than the previous year. The company guidance of 10,000 to 11,700 Gold Equivalent Ounces represents at its midpoint a 20% increase on 2023 and an 85% increase from 2022. Its revenue forecast is established at approximately US$20.0 to US$23.3 million at prices of US$2,000 per ounce of gold and US$3.90 per pound of copper. Alongside royalty revenue, the Company expects to receive approximately US$20 million in payments from the portfolio over 2024 and 2025. (TSXV: ELE) (OTCQX: ELEMF) News Release
Orla Mining provided an update on work at the South Railroad Project. The company says the have confirmed strong carlin-type mineralization at the North Bullion sulphide deposit. The North Bullion deposit, located in the northern part of the South Railroad property, approximately 9.5 kilometres north of the Pinion Deposit, contains a sulphide inferred mineral resource of 3.72 million tonnes grading 4.49 grams per tonne of gold (g/t Au), for a total of 457,000 ounces. The 2023 infill drilling program successfully achieved its objectives in validating historical data for upgrading the mineral resource estimate category from inferred to indicated. Results reported today included 51.8m of 3.24 g/t Au and 24.4m of 2.37 g/t Au. The planned 2024 exploration program includes 4,400 metres of drilling to extend mineralization at the Pinion and Dark Star deposits, 6,400 metres of drilling to test extensions and grow satellite deposit resources, and 12,000 metres to drill test exploration targets on the South Railroad and Pony Creek properties. (TSX: OLA) (NYSE: ORLA) News Release
Dakota Gold says they have delineated three distinct ledges of high-grade Homestake Mine-stule gold mineralization within the jB Gold zone at the Maitland Gold Project in South Dakota. The width, grade and stratigraphy of intercepts identified at Maitland to date are analogous to the gold mineralization found in the "West Ledge" system at the historic Homestake Mine that produced approximately 6 million ounces of gold. Drill results reported today providing this information included Drill hole MA24C-036 returned 9.36 grams/tonne gold over 2.6 meters, and drill hole MA24C-038 returned 25.03 grams/tonne over 4.4 meters. Both holes are located in 36 Ledge on the west side of the Maitland mineralized gold trend. Drilling at Maitland is transitioning from wider spacing of approximately 250 meters, to tighter spacing to delineate the ledges now outlined which remain open along strike and to depth. (NYSE: DC) News Release
Group Eleven Resources provides results from the first four holes of the 2024 drill program at the Company's 100%-owned Ballywire zinc-lead-silver discovery in Ireland. These drillholes were testing previously undrilled C2 and C3 gravity-high anomalies (located 530m and 930m east of the Ballywire discovery area). Highlights included 4.6m of 5.2% Zn+Pb and 15 g/t Ag, and 4.4m of 304 g/t Ag, 0.73% Cu and 1.0% Zn+Pb. Drilling continues with two rigs, testing further north on Anomaly C3 and in between the discovery area and Anomaly C2, respectively. (TSXV: ZNG) (OTCBB: GRLVF) News Release
Sun Peak Metals says rilling has commenced on the Shire Project in Ethiopia. The initial 2024 drill program has 6,000 to 7,000 meters planned and will focus on new, untested copper-gold VMS targets which have been developed by the Company. The target currently being drilled is the Hamlo VMS prospect on the Terer Exploration License. The prospect was identified by exploration work which showed a significant gold and copper soil geochemistry anomaly. The 2019 airborne VTEM survey then identified a strong electromagnetic (EM) conductor, coincident with VMS style geology which was mapped over one kilometer. Subsequent detailed ground gravity work defined a gravity high anomaly that appears to be related to the subsurface extension of the gossan at surface. (TSXV:PEAK) (OTCQB:SUNPF) News Release
FPX Nickel has created a Technical Advisory Committee to provide guidance for FPX’s management regarding exploration and development of the Baptiste Nickel Project. The TAC includes representatives of FPX’s three strategic investors, each holding an approximate 9.9% interest in the Company’s issued and outstanding shares – Sumitomo Metal Mining, Outokumpu Oyj, and the confidential corporate strategic investor first announced in November 2022. The mandate of the TAC is strictly of an advisory nature; decisions regarding the Project will be subject to the sole determination of FPX’s management and board of directors. (TSX-V: FPX, OTCQB: FPOCF) News Release
West Red Lake Gold has closed its second and final tranche of its private placement of gold linked notes, bringing that total value to just over $25M USD. The Company issued an additional 1,924 units under the Second Tranche, at a price of US$1,000 per Offering Unit, for gross proceeds of US$1,924,000. Each Offering Unit contains Notes in the aggregate principal amount of US$1,000 and 710 common share purchase warrants. Each whole Warrant entitles the holder to purchase one common share of the Company at an exercise price of C$0.95 per share until March 19, 2029. The Notes represent unsecured obligations of the Company, bear a 12% per annum coupon, calculated and payable quarterly in arrears, and will mature on December 31, 2029. Commencing January 1, 2026, the Company will cause gold to be placed in escrow on a quarterly basis into a gold trust account. The aggregate principal amount of Notes outstanding will be reduced by the Company on a quarterly basis, commencing on March 31, 2026, and with the final payment on December 31, 2029, in accordance with the payment schedule to be set forth in the indenture that will govern the Notes. The Notes will amortize based on a guaranteed floor price of US$1,800 per ounce of gold. Any excess proceeds by which the gold price exceeds the Floor Price will be paid to investors as a premium. News Release
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