Morning Briefing: Elemental Royalties received first gold deliveries from Rambler
Welcome to Mining Stock Daily. Standing-in for Trevor Hall, I’m Paul Harris
Today is Thursday, July 28th.
On Wednesday the price of gold rose during the eastern hemisphere physical metal trading hours, followed by the as-expected sell off into and after the London a.m. price fix. After a brief down-spike to $1708 per ounce when the NYSE opened, the price rose steadily up to $1719 and then shot up to as high as $1739 after the market perceived the FOMC policy statement and follow-up Powell presser to have hints of a possible policy pivot. Gold settled at $1733. Silver traded higher overnight from $18.45 per ounce to as high as $18.80 before the obligatory price smash when the Comex floor opened that pushed silver down to $18.35. This was followed by a bounce to $18.60, which was followed by a rocket launch move to as high as $19.10 before silver settled at $19.05.
The Mining Stock Journal said that silver has had a relatively firm bid this week which could be the sign of a possible bottom. The mining stocks jumped along with the rest of the stock market after the FOMC policy statement was released, with the GDX rising 1.7%. The Mining Stock Journal said that, while the precious metals sector underperformed the FOMC rally frenzy, it is starting to see signs of a potential bottom for the sector. The newsletter will be reviewing some of these signs in the new issue of the Mining Stock Journal released this afternoon. It will also be presenting some ideas that are exceptionally undervalued relative to company fundamentals as well as discussing a junior penny stock that is an irrationally underpriced call option on the company's portfolio of projects and cash hoard.
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…
Elemental Royalties received first gold deliveries under the gold purchase and sale agreement with Rambler Metals and Mining), the owner of the Ming Copper-Gold Mine in Newfoundland and Labrador in Canada, its first revenue from a Canadian mine. The company received 408 ounces from the Ming Gold Stream for the June quarter, with gross value of about US$694,000. Under the Ming agreement, Elemental will receive 50% of payable gold production until Rambler has delivered 10,000oz to Elemental, after which Elemental will receive 35% until Rambler has delivered a further 5,000 ounces, and then 25% of production for the life of mine. Elemental will make ongoing payments equal to 20% of the market price of gold. Elemental said its 1% Net Smelter Return royalty on the Mercedes Gold Mine is now payable following a date hurdle of July 28. Elemental Royalties trades on the TSXV under ELE and on the OTCQX under ELEMF. News release
Vizsla Silver reported results from nine new drillholes targeting the southern extension of the Napoleon Vein, at its Panuco silver-gold project in Sinaloa, Mexico. Highlights included 3.9m grading 1,241 grams per tonne silver equivalent in hole 300. The results expanded the vertical extent of the high-grade footprint by 100m to ~800 metres long by 400 metres down dip. Of the nine drill rigs currently turning on the property, Napoleon has three rigs. A resource update is planned for the December quarter. Vizsla Silver trades on the TSXV and NYSE under VZLA. News release
Contango ORE said Kinross Gold announced feasibility study results for the Manh Choh gold project in Alaska in which it owns 30% and Kinross 70%, and a decision to proceed with development of the project. The feasibility outlines a plan to batch process the 8g/t Manh Choh ore through Kinross' Fort Knox mill, which means the project will proceed without having to permit, capitalize and construct a mill or tailings facilities at the project site. The project will produce 225,000oz/y AuEq for 4.5 years from 2024 of which 30% is attributable to Contago, following an initial capital cost of US$214 million. The early works program has begun. Contango ORE trades on the NYSE American under CTGO. News release
Aurion Resources reported results for the final 12 holes from the winter 2022 drilling program, including 6 drilled at the Helmi Discovery and 6 scout holes testing selected regional targets on the Aurion-B2Gold Joint Venture in the Central Lapland Greenstone Belt in northern Finland. New gold intercepts at the Helmi Discovery included 33m grading 1.46 g/t Au with mineralization extended along strike to the west and up and down dip. Scout drilling intersected new zones of gold mineralization 950 to 1,250 m from the Helmi Discovery including 2m grading 5.70 g/t in hole 17. The partners agreed a $3.5 million increase to the budget for 2022 to bring it up to $13.5 million with 17,000m of drilling planned for the year. Aurion Resources trades on the TSXV under AU and on the OTCQX under AIRRF. News release
Mako Mining discovered a new gold bearing structure at the Las Conchitas-North area of its San Albino-Murra property in Nicaragua. The "Crucita" structure was intersected in a diamond drill hole located approximately 1.44km south of the San Albino gold mine. Highlights included 2.6m grading 37.28 g/t Au and 34.9 g/t Ag at Crucita, which is the second shallow high-grade discovery the Company has announced over the past 2 months at Las Conchitas. Mako Mining trdes on the TSXV under MKO and on the OTCQX under MAKOF. News release
That concludes today’s morning briefing.
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