Morning Briefing: Getchell Gold gets a nice hit at Fondaway Canyon

Welcome to Mining Stock Daily. Standing-in for Trevor Hall, I’m Paul Harris

Today is Tuesday, July 26th.

Gold ran up, surprisingly, once the physical eastern markets closed and London opened, from $1715 per ounce to $1735. This included rising sharply into and nearly an hour after the a.m. London price fix. But the paper markets took over and gold abruptly, on no news, was hammered back down to $1715 despite the rather large sell-off in the dollar index. This has all of the hallmarks of outright price intervention. 

Silver followed the same price-path as gold, trading up to as high as $18.66 per ounce before getting smashed down to as low as $18.20 and then bouncing to settle at 18.31. The mining stocks were slammed in sympathy with the sell-off in the metals. But the sell-off was compounded by the drubbing Newmont received after the Company reported a 44.5% YoY decline in EPS, badly missing  the Street's consensus earnings estimate. The Company attributed the disappointing earnings numbers to a lower price of gold and considerably higher costs driven by inflation. The Company said its all-in sustaining costs rose 16% YoY. That said, revenues were in-line with Street expectations due to a YoY 3% increase in gold-equivalent production. NEM's 13.2% sell-off exaggerated the decline in GDX and the Amex Gold Bugs Index. 

It wasn't all bad for the mining stocks, as Hecla rose 6.3% and a handful of junior explorers also rose Monday. The Mining Stock Journal said that the short-term fate of the precious metals sector is at the mercy of the entire stock market and the hedge funds, whose algo-trading is on auto-program to sell or short the precious metals sector in correlation with any sell-offs in the stock market. But this is setting up an eventual epic move higher for precious metals sector investors.

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. 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….

Getchell Gold reported the remaining results for drill hole 17 that targeted the high-grade North Fork zone at the Fondaway Canyon gold project in Nevada, with a highlight of 9.9m grading 17.7 g/t Au within a broader zone of 51.9m grading 5.4 g/t. Hole 17 is the first of the 2022 drill program at Fondaway Canyon tasked with delineating the high-grade gold discovered by hole 16 last year. Five holes have been completed this year for 1,867m. Getchell Gold trades on the CSE under GTCH and on the OTCQB under GGLDF. News release

Tudor Gold released the third set of drill results for Phase l of its 2022 exploration program at the Treaty Creek property in the Golden Triangle of British Columbia in Canada. Drilling is focused on resource expansion and delineation of several areas including the Goldstorm Deposit and the Eureka and Calm Before the Storm zones. Highlights included 1m grading 70.96g/t gold equivalent in hole 143, its highest single gold grade intercept to date, which included visible gold. Tudor said the gold mineralization resembles that at the Valley of Kings (VOK) Deposit at Newcrest's Brucejack Lake Mine adjacent to its southern border. Tudor Gold trades on the TSXV under TUD. News release

Erdene Resource Development announced final results from drilling at Ulaan Southeast some 300 metres west of the construction ready Bayan Khundii Gold Project in southwest Mongolia. This program expanded known mineralization to the west and at depth, and intersected an interpreted high-grade, gold bearing “feeder” structure. Follow-up exploration SE is underway. Highlights included 27m grading 3.47g/t gold in hole 53 within a projected feeder zone, including 2 metres of 24.9 g/t. Mineralization at Ulaan SE has been traced over a 200 metre strike, to a depth of 450 metres. Erdene aims to define a 2Moz gold equivalent resource by the end of the year. Erdene Resource Development trades on the TSX under ERD. News release

Alphamin Resources reported record quarterly tin production for the June quarter of 3,180 tonnes from its operations in Democratic Republic of Congo, and declared a 3c per share dividend payable August 5th. It said its year-to-date production of 6,241 tonnes exceeds the run-rate to achieve market guidance of 12,000 tonnes for 2022. Higher production reduced its AISC 7% to US$14,677 while its average achieved tin price was US$35,345/t, down from US$43,834/t in the March quarter. Alphamin Resources trades on the TSXV under AFM. News release

Lithium Ionic reports initial drilling results from the Galvani claims near its Itinga lithium project Minas Gerais, Brazil on which it is conducting a 900m due diligence drilling program following a recent binding asset purchase agreement. The Company also reported new drilling results from Area 1 of its Itinga Project. At Galvani, it reported 24.93m grading 1.57% Li2O in hole 1, while at Itinga it returned 2.7m grading 2.23% Li2O in hole 6. Lithium Ionic trades on the TSXV under LTH. News release

Kuya Silver entered into an agreement with Canaccord Genuity and Research Capital for a best efforts private placement financing to raise C$2 million. The Private Placement is expected to consist of up to 4.5 million Units at 45c each with each unit being comprised of one share and one warrant exercisable at 70c for five years. The proceeds will be used for general working capital purposes. Kuya Silver trades on the CSE under KUYA and on the OTCQB under KUYAF. News release

That concludes today’s morning briefing.

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