Morning briefing: Good news for Hochschild at Inmaculada

Welcome to Mining Stock Daily. I’m Trevor Hall. 

Today is Wednesday August 2nd. 

Tuesday the price of gold continued selling off from the sell-off that started midday on Monday. It has dropped from a high of $2010 per ounce Monday to the $1981 afternoon price settlement Tuesday. Similarly, since midday Monday silver has been bashed down from $24.98 per ounce to the Tuesday afternoon closing price of $24.42. The Mining Stock Journal said that, other than maybe a somewhat overbought technical condition, there has not been any fundamental news or events that would have triggered this sudden price decline. In fact, Monday evening it was announced that the U.S. Treasury was going to issue over $1 trillion in Treasury debt during the September quarter, a quarter trillion more than forecast in May. This should have sent the prices of gold and silver soaring, as this huge increase in debt to fund Government deficit spending is inflationary. As such, the mining stock newsletter suspects official intervention is at work to dismantle gold's warning signal to investors. The mining stocks were hammered hard, with the GDX more than giving up yesterday's gain, closing just above its 200 day moving average. GDX, though, is still in its uptrend from late September. If it holds at the 200 dma, it likely will move higher from there. 

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….

Hochschild Mining has received regulatory approval for the Modified Environment Impact Assessment (MEIA) for its Inmaculada operation in southwest Peru from SENACE, Peru’s National Service of Environmental Certification for Sustainable Investments. The MEIA approval paves the way for the mine life to be extended by 20 years.  “This approval represents a significant achievement for Hochschild and the Peruvian mining industry and demonstrates the government’s commitment to confirming Peru’s position as an attractive mining friendly jurisdiction,” said Hochschild Mining chief executive Ignacio Bustamante. Hochschild Mining (LSE: HOC) (OTCQX: HCHDF)

Piedmont Lithium made the first commercial shipment of spodumene concentrate produced by North American Lithium, which is owned by Sayona Quebec, a joint venture between Piedmont (25%) and Sayona Mining (ASX: SYA) (75%). The initial 20,500 ton shipment was made via a trading company to international parties. Piedmont expects to ship approximately 56,500 tons in H2 2023 under its joint venture offtake agreement, including the first tons under the long-term supply agreement with LG Chem. Following this initial JV shipment, the parties have agreed that the next two shipments will be to Piedmont customers via the Offtake Agreement. Piedmont owns a 12% equity interest in Sayona Mining and holds an offtake agreement to purchase the greater of 113,000 metric tons per year or 50% of concentrate production at a ceiling price of $900 per metric ton. Sales under the Piedmont Offtake Agreement are planned to fund the Company’s broader strategic initiatives, including development of its projects in Tennessee, Ghana, and North Carolina. Piedmont Lithium (Nasdaq: PLL; ASX: PLL) news release

i-80 GOLD announced the discovery of a new sulphide horizon called the Tyche Zone carrying high-grade gold‑silver mineralization during exploration drilling at the Ruby Hill Property in Nevada in a previously untested area along the Graveyard Flats intrusive. Highlights included 17.5m grading 45.4 g/t Au and 50.2 g/t Ag in hole 18A. The new zone was intersected in the directional drilling program being completed at Ruby Hill to test the Blackjack deposit under the Archimedes open pit. Strongly altered and brecciated intrusive rock was intersected along the margin of the Graveyard Flats Stock with visible gold, elevated sulphides, and vuggy silica. I80 recently received approvals for the construction of new roads to provide access to additional drill pads on the property, allowing for the ability to expand drilling on multiple zones, including on the east side of the Archimedes pit that will provide for additional testing of the Tyche Zone. i-80 GOLD (TSX: IAU) (NYSE: IAUX) news release

Jaguar Mining entered into a share purchase agreement to acquire IAMGOLD’s Pitangui Project in Minas Gerais and its part of the Acurui joint venture in Brazil. Jaguar will issue 6.4M shares in a transaction valued at USD$9 million and an initial NSR of US$80 per ounce for the initial 250,000 ounces of gold sold from Pitangui. Acurui is an exploration joint venture between Jaguar and IAMGOLD. ) (TSX:JAG) (OTCQX:JAGGF) news release

GoGold Resources announced additional drilling results from Los Ricos South, within the Main area, with a highlight of 30.2m of 404 g/t silver equivalent in hole 302 including 9.7m of 1,110 g/t AgEq. The company has drilled an additional 100 holes in the Main zone at Los Ricos South since its initial July 2020 Resource Estimate. An updated Resource and Preliminary Economic Assessment are due in the coming weeks. GoGold Resources (TSX: GGD) (OTCQX: GLGDF) news release

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