Morning Briefing: Gold Hosts Strong Rally and Lifts Equities

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday November 7th. 

Gold and silver shot up Friday on what was interpreted by the market as a non-farm payroll report that might prompt the Fed to slow down or pause hiking interest rates. Both metals started to drift here shortly after midnight Friday then spiked higher when the payroll report headlines hit the tape. For the day, gold jumped $55 to $1685 per ounce while silver shot up a whopping $1.48 or 7.6% to close the day $20.91 per ounce. The Mining Stock Journal said that in all likelihood hedge fund short-covering played a material factor in the size and persistence of the move in the metals Friday. Technically, gold tagged its 50 day moving average. It would be helpful for the bulls cause if the yellow metal clears the 50 dma and heads back over $1700. Silver, on the other hand, held its 50 dma six days in a row before launching toward its 200 dma on Friday. The Mining Stock Journal said that it feels like something significant could be percolating in the silver market. 

The mining stocks also shot up on Friday, with GDX blasting over its 50 dma and closing up 10%.  Some silver stocks were up even more percentage-wise. If there's follow-thru on Friday's move in the precious metals sector, it could finally be the start of a major bull move.

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. 

ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.

And here’s what you need to know this morning….

SolGold entered into a binding agreement with Osisko Gold Royalties for a US$50 million royalty financing for its Cascabel copper-gold project in Ecuador. Osisko will receive a 0.6% NSR interest from SolGold, with SolGold having a buy-back option, exercisable for four years from closing, for one-third of the NSR interest. This NSR adds to the $100 million the company raised from Franco-Nevada in 2020 for a 1% NSR. SolGold trades on the LSE and TSX under SOLG. News release

Thesis Gold released more drilling results from the Bonanza zone at its Ranch Gold Project, in British Columbia. Highlights included 91m grading 1.81 g/t gold and 8.41 g/t silver for a 1.92 g/t AuEq in hole 8 which included 35m grading 3.06 g/t AuEq. It said step-out drilling at Bonanza and Ridge continue to demonstrate expanding zones of broad shallow mineralization along strike, and in parallel structures. Thesis Gold trades on the TSXV under TAU and on the OTCQX under THSGF. News release

Banyan Gold announced results from thirty-six drill holes completed during its 2022 exploration program at the Powerline and Aurex Hill deposits on its AurMac Property in Yukon, Canada. Highlights included 84.4m grading 1.13 g/t Au in hole 320. The company said drilling continues to expand the extent of near/on-surface gold mineralization at the Powerline and Aurex Hill. Banyan drilled more than 50,000m in 211 holes in the 2022 season. Banyan Gold trads on the TSXV under BYN and on the OTCQB under BYAGF. News release

Marimaca Copper entered into a water option agreement to secure the future water supply required for its Marimaca copper project near Antofagasta in Chile. Under the agreement, Marimaca has a five-year option to negotiate an offtake of seawater used for cooling at a thermal coal electricity plant in Mejillones, some 25km from the project and operated by one of Chile’s largest energy suppliers. The agreement allows Marimaca to advance final project permitting and technical studies, including water pipeline studies that are already underway. The terms for the take-or-pay offtake have been agreed, and at a lower cost than the company projected in a 2020 preliminary economic assessment. Marimaca Copper trades on the TSXV under MARI. News release

SilverCrest Metal has declared commercial production at the Las Chispas Mine in Sonora, Mexico. Declaration of commercial production is based on achieving a continuous two month period operating the processing plant at a minimum of 80% capacity for its name plate design of 1,250 tonnes per day or 1,000 tpd and showing a combined gold and silver recovery or silver equivalent recovery of greater than 85%. The commissioning period was from September 1 through October 31, where the plant processed 62,146 tonnes of ore for an average of 1,019 tpd. For the same period, the metallurgical recovery averaged 96.7% gold and 96.8% silver, or 96.7% AgEq. SilverCrest trades on the TSX with SIL and on the NYSE American with SILV. News Release

Arras Minerals announced that Teck Resources intends to take a 9.9% interest in the company by taking C$2.6 million of a C$3 million non-brokered private placement at 45c per share. The funds will provide Arras with the ability to continue exploration at the Beskauga project as well as the regional projects in Pavlodar, Kazakhstan. Teck, the 5th largest exporter of refined copper worldwide, has the right to maintain its pro-rata ownership while its interest remains above 5%. Beskauga has an Indicated Resource of 111.2 million tonnes grading 0.49 g/t gold, 0.30% copper, and 1.3 g/t silver for 1.75 million ounces of contained gold, 333.6 thousand tonnes of contained copper, and 4.79 million ounces of contained silver. Arras Minerals trades on the TSXV under ARK. News release

Angold released assay results from its drilling at the Iron Butte Project in Nevada. At Red Ridge, drilling returned .81 g/t gold equivalent over 94.5m from surface, and included 1.5m of 13.62 g/t gold equivalent at 405m depth. The interval represents the highest-grade gold intercept historically-to date on the project and is deeper than all previous drilling in Red Ridge. Step-out drilling has also intersected mineralization 135 m down-dip from the North Zone with 0.58 g/t gold equivalent over 19.8 m from 153.9 m in hole AAU22-02. The company says this hole expands the North Zone mineralization to the north and at depth. Angold trades on the TSXV with AAU and on the OTCQB with AAUGF. News Release

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