Morning Briefing: Graphite One Publishes PFS for its Alaskan Project
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Monday, August 29th
Gold finished last week where it started at $1750 per ounce, December gold basis after trading up to $1772 mid-week. But gold was slammed hard along with the stock market after Jay Powell delivered a much more hawkish speech than had been anticipated at the annual Jackson Hole Central Banker meeting in Wyoming but the yellow metal managed to hold support at $1750. Similarly, silver was pounded down Friday from $19.25 per ounce back under $19 to $18.70 before settling at $18.76, which is a support level for now. The Mining Stock Journal is quick to point out that the price-smash in the metals' prices occurred while the Comex paper market was the only active market trading precious metals by 10 a.m. NY Time on Friday, which made it easy for the price management team to hammer down the prices using paper derivatives.
The newsletter also noted that, over the course of the summer, there has been a significant amount of gold and silver bars removed from the registered account in the Comex metals vaults. This represents gold and silver which has been removed from the stock of bars that have been made available for delivery. In addition, last week the banks and commercial hedgers reduced their gross short exposure to paper gold and silver as well as increased their net long position. The Mining Stock Journal said this could be in preparation for a move higher in the metals. The mining stocks were hammered Friday, with the GDX down 4.7%. It closed just above the low it hit on July 25th. The Mining Stock Journal has no comment on the mining stocks other than to say that they are historically cheap relative to all other financial assets.
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…Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning….
Graphite One announced the results of a pre-feasibility study for its Graphite One project in Graphite Creek, Alaska detailing production of about 75,000 tonnes per year of products of which about 49,600tpy would be anode materials, 7,400tpy purified graphite products, and 18,000tpy of unpurified graphite products with a 23-year mine life. The project would yield an after-tax net present value of US$1.4 billion and an internal rate of return of 22% following a $1.2 billion initial capital cost before accounting for tax credits by the recently enacted U.S. Inflation Reduction Act. The company has a parallel strategy to simultaneously develop a commercial scale battery anode materials manufacturing facility in Washington State and the Graphite Creek Mine in Alaska. The Graphite Creek deposit hosts a measured and indicated resource of 32.5 million tonnes grading 5.25% graphite, a 197% increase from the 2019 estimate. Graphite One also increased its C$15.5 million non-brokered private placement at $1.15 per unit to $21.3 million. The company trades on the TSXV under GPH and on the OTCQX under GPHOF. News release
An early candidate for drill intercept of the week as Collective Mining announced assay results from two additional holes completed at the Apollo copper-gold-silver porphyry-related breccia target at its Guayabales project in Caldas, Colombia. The company intersected a broad, high-grade zone of breccia mineralization with multiple, overprinting carbonate base metal veins with a highlight of 180.6m grading 2.43 g/t gold equivalent in hole 3, while hole 5 returned 268m grading @ 1.50g/t gold equivalent. Collective has three rigs drilling at Apollo with four additional completed holes awaiting assay results. Five holes have now been reported at Apollo and resulted in expansion of this main breccia and overprinting vein system with dimensions of up to 300m along strike by 100m across by 400m vertical. Collective Mining trades on the TSXV under CNL and on the OTCQX under CNLMF. News release
Royal Fox Gold reported assay results for 18 holes in the Fennec Fox and Fault zones from drilling on the Philibert gold deposit near Chibougamau in Quebec. Highlights included 21.5m grading 4.29g/t Au in hole 377 including 7m grading 9.62g/t. The company said results from the Fault Zone demonstrate the potential for continued mineralization within the 300m gap between the northwestern and southeastern domains of the Philibert trend. Drilling tested mineralization over a 480m strike length and up to 250m vertical depth. Results from 59 Holes are pending. Royal Fox Gold trades on the TSXV under FOXG. News release
Lion One Metals says it has made a new high grade gold discovery located in the Navilawa Caldera 2 km northeast of the company’s Tuvatu Alkaline Gold Project in Fiji. The discovery is the Batiri Creek Vein. The new structure is characterized by an intense zone of veining on a lithological contact between monzonite and andesite, with two significant N-S and NE-SW oriented structural intersections. Surface channel sampling at the vein returned 4m grading 13.27 g/t gold. Lion One is planning a regional drill program for the Batiri Vein target. The Company now has eight drill rigs, with the pending delivery of the latest two rigs expected around mid-September. Lion One trades on the TSXV with LIO and on the OTCQX with LOMLF. News Release
Hemlo Explorers executed an agreement with Barrick Gold whereby the gold major can earn an 80% interest in its Pic project in Ontario, Canada. To do so, Barrick has to deliver a Pre-Feasibility Study within six years with at least $800,000 in guaranteed expenditure in the first twelve months and $1 million a year thereafter. Subject to a successful Earn-In by Barrick, the two companies will establish a joint-venture following which, if either party’s interest falls declines below a 10% threshold, then that party’s interest shall convert to a 1% NSR royalty. Interestingly, the Idaho project at Pic is not a gold project but a palladium-copper project, similar to Generation Mining’s Marathon project which is 3km away. Barrick will also invest C$193,000 via a private placement priced at 11c per share. Hemlo Explorers trades on the TSXV under HMLO. 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.