Morning Briefing: Gold Fields and AngloGold Ashanti Agree to JV in Ghana
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday March 16th.
The gold price traded sideways during the eastern hemisphere physical markets trading hours but was smacked below $1900 per ounce to $1888 in paper gold trading after Asia closed. However, the yellow metal took off running shortly after the a.m. London price fix on fears of a Credit Suisse collapse and, in general, fears of a repeat of 2008. Gold shot up from $1890 to as high as $1944 before a report that the Swiss Central Bank said it would provide liquidity to prop up the financially troubled bank. Silver was actually lower on the day, as the market decided to treat it as an industrial metal and sold it off along with the general stock market. With the gold/silver ratio at 88, the Mining Stock Journal said that silver is extraordinarily undervalued and meets the strict definition of a value investment.
The mining stocks were volatile during the day. At times they rallied in response to the price-action in gold and at times they sold off in correlation with the stock market. But the GDX closed flat on the day while the Amex Gold Bugs Index with the largest cap unhedged mining stocks rose 0.61%. The Mining Stock Journal commented that, based on the Central Bank responses to the Silicon Valley Bank collapse and now the potential collapse of Credit Suisse, it's likely there will be a rush of capital into all flavors of gold silver - physical, ETF and derivative, that is.
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….
Defiance Silver provided the final results from seven drill holes drilled during the 2022 drill program. These holes were designed to improve the main Veta Grande structural model and to test splays to the Veta Grande system, including the footwall San Herculano structure. Highlights included hole 62 which encountered a base metal rich portion of the Veta Grande structure, returning 2.58m of 423 g/t AgEq within a wider 11.22m intercept of 152 g/t AgEq. Hole 61 returned 4.97m of 142 g/t AgE. Hole 60 showed just under 7m of 114 g/t while hole 59 returned 9.57m of 175 g/t. Defiance undertook a drill program in late 2022 to gather additional data in the San Acacio resource area. These holes were designed to improve the main Veta Grande structural model and to infill poorly-drilled areas, as well as to test both hanging wall and footwall splays to the Veta Grande system. Defiance Silver trades on the TSXV with DEF and on the OTCQX with DNCVF. News Release
Gold Fields and AngloGold Ashanti have agreed key terms of a proposed joint venture in Ghana to unite Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines. Gold Fields will have an interest of 66.7% and AngloGold Ashanti 33.3% in the Proposed Joint Venture, with the government of Ghana also retaining its 10% interest in Tarkwa. The result would be the largest gold mine in Africa with over 600,000oz/y production an initial life of 18 years. Operational synergies would be achieved by optimising mining of the combined ore bodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders. Gold Fields Johannesburg Stock Exchange (JSE) under ZAC and New York Exchange under GFI. Anglo Gold Ashanti on the JSE under ANG and on the NYSe under AU. News release
Colombia’s Mineros announced a prefeasibility study on its Porvenir gold-silver-zinc project in northeastern Nicaragua. The PFS features an eight-year of life of mine with average annual production of 56,700oz Au, along with 112,300oz Ag and 38.5Mlb Zn at an all-in sustaining cost of $929/oz AuEq, with an after-tax NPV of $160 million and IRR of 21% and a 3.5-year payback at US$1650/oz gold, following a US$161 million capital investment. The maiden reserves are 5.6Mt grading 3g/t gold, 10.21g/t silver and 2.96% zinc for 572,000oz gold. Mineros (TSX: MSA) News release
Ivanhoe Electric have reported visual confirmation of the presence of soluble copper mineralization in a step out hole at the Texaco Ridge Exploration Area, within its Santa Cruz Copper near Casa Grande, Arizona. hole 122 intersected visible copper oxide, chalcocite and chalcopyrite mineralization starting at approximately 429m depth, including Atacamite and Chrysocolla above a thick intersection of primary mineralization. Additionally, a chalcocite enrichment blanket was identified from 542 to 587m in depth that transitions into primary-style mineralization containing chalcopyrite. Assays for drill hole SCC-122 are pending. Ivanhoe Electric (NYSE American:IE)(TSX:IE) news release
Roscan Gold says they have received the environmental permit from the Ministry of Environment, Sanitation and Sustainable Development of the Republic of Mali for a mining operation at its 100% owned Kandiole Gold Project. Its a key milestone for the development of the Kandiole Gold Project and the penultimate step that precedes the granting of the final mining license, which Roscan expects to obtain in the near future. Roscan Gold trades on the TSXV with ROS and on the OTCQB with RCGCF. News Release
Elevation Gold Mining provided initial results from reverse circulation resource definition and expansion drilling at Moss Mine in Arizona. 22 RC holes for 4,906m have been completed into three different near-mine targets with assay results for fourteen have been received, with a highlight today of 100.58m grading 0.50g/t Gold in the Reynolds Pit Area. Elevation Gold Mining (TSXV: ELVT) (OTCQX: EVGDF) news release
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