Morning Briefing: First Majestic Silver drills 29.7m @ 8.39g/t Au at Jerritt Canyon

Welcome to Mining Stock Daily. Standing in for Trevor Hall, it’s Paul Harris.


Today is Wednesday, June 1st


 

On Monday, gold and silver resumed their standard overnight rally while the eastern hemisphere physical buying markets were open. Then both metals were promptly shoved off a price cliff when the physical trading markets closed and the paper derivative trading markets in London and New York took over the market action. After trading as high as $1860 per ounce, gold was pushed down steadily through the day and settled at $1840. This was despite a large drop in the dollar index on Tuesday further adding to the suspicion that predatory selling by the banks was primarily responsible for gold's price decline. 

Similarly, silver was blasted 50 cents lower from $21.98 per ounce ahead of and after the LBMA price a.m. price fix. It rallied back quickly back up to $21.96 and was turned right back down to $21.54, where it settled. It's obvious that $22 is being defended rigorously by the price management team. The mining stocks were ripped lower on Tuesday, with the GDX down 2.4% and the Amex Gold Bugs index down 2.3%. The Mining Stock Journal noted that sentiment toward the precious metals sector remains negative.

 

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….

First Majestic Silver announced drilling results from its Jerritt Canyon Gold Mine in Nevada which it acquired in April 2021. It has completed over 70,000m in exploration step-out and greenfield holes designed to increase the confidence of the mineral resource and add new ounces. Highlights included 29.7m grading 8.39g/t in hole 1112 at the Smith/SSX mines area 55m from active underground workings. The Company plans to drill 135,000m at Jerritt Canyon this year with a focus on Smith/SSX mines, and the Winters Creek, Waterpipe, Wheeler, and Murray areas. The US Forest Service has approved an exploration permit to conduct activities across 17,976 hectares at Jerritt Canyon allowing for the construction of new exploration roads and up to 1,100 new drill pads. First Majestic Silver trades on the NYSE under AG and on the TSX under FR. News release

Aton Resources released Phase 2 diamond drilling results at its Rodruin gold exploration project at its Abu Marawat Concession in Egypt. Highlights included 36.9m grading 7.04 g/t Au, 47.2 g/t Ag, 0.63% Cu and 7.18% Zn in hole 75. The company said Drilling continues to indicate the potential for both surface oxide and deeper sulphide mineralisation at Rodruin. Aton Resources trades on the TSXV under AAN. News release

QC Copper and Gold said its 60,000m drilling program on its Opemiska copper project in Quebec Continue to Convert Waste into Mineralization, as it reported over 20 New In-Pit Intersections. Highlights included 43.5m grading 0.67% Copper Equivalent with drilling expected to expand the pit size. The company said drilling confirms its thesis that mineralization, currently defined as waste, exists inside the pit and that it will be able to reduce the stripping ratio of its conceptual pit. QC Copper and Gold trades on the (TSXV: QCCU) (OTCQB: QCCUF). News release

Prime Mining said step out drilling at the Guadalupe East deposit at its Los Reyes project in Sinaloa, Mexico continue to expand mineralisation with highlights including 3.6m grading 62 grams per tonne gold and 977.6 g/t silver in hole 53. The company said drilling has defined the Guadalupe East vein group length over 420m and the total strike length of the Guadalupe East vein system now over 1km. Prime has drilled 75,002m in 283 holes at Los Reyes. The 50,000m phase 2 program is going to be expanded with drilling planned to continue until the end of October. Prime Mining trades on (TSX-V: PRYM, OTCQB: PRMNF. News release

Mako Mining has Discovered New Gold Bearing Veins at Las Conchitas North at its San Albino gold project in Nicaragua. Drilling intersected 90cm grading 51.80 g/t of Au and 29.8 g/t of Ag at Mina Francisco where drilling has defined over 200m of strike and nearly 330m of dip from surface, which may yield additional open-pittable mineral resources. Mako has completed 4,670m in 35 holes of its 2022 drilling campaign at Las Conchitas North resulting in the discovery of the Mina Francisco and Tirado veins as well as further delineation of the San Pablo vein. Mako Mining trades on the  (TSXV: MKO) (OTCQX: MAKOF). News release

Galleon Gold sold its 100% interest in the William Lake nickel Property in Manitoba, Canada to Australia’s Leeuwin Metals for C$1 million in Cash, 2.5M Shares and 2.5M Options. Galleon Gold trades on the (TSXV: GGO). News release

That concludes today’s morning briefing.

The Mining Stock Daily morning briefing is produced by Clear Creek Digital and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network. 

The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.

Trevor HallGold, Silver, GDX