Morning Briefing: Guanajuato Silver to Acquire Great Panther's Mexican Assets

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

Today is Thursday, June 30th.

Overnight Wednesday, oddly gold traded lower during the Asian physical market hours but then took off like a scalded cat at 6:00 a.m. NY time, running from $1815 to as high as $1834 before abruptly hitting an apex and crashing back down $1817. It meandered sideways the rest of the day and settled at $1819. The Mining Stock Journal said that there was not any news of materiality that would explain the strange trading pattern on Wednesday, especially since the local data from India and China show that both countries were actively buying gold. The newsletter added that it looks as if hedge fund algos may be dictating the trading action in the paper market, as the dollar rallied sharply Wednesday vs the euro and yen in what appears to be algo driven flight-to-safety buying of the dollar vs selling or shorting euros and yen and selling paper gold. It added that, similar to the summer of 2008, it looks like big credit market problems are brewing in Europe and Japan that will spread to the U.S. markets. Silver followed the same pattern as gold, peaking just above $21 before waterfalling down to 20.62 and settling at $20.71. The mining stocks continue descending toward Hades, as GDX sadly dropped below the March 2020 low. The Mining Stock Journal opined that it appears like a repeat of the summer of 2008 in highly probable.

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….

Guanajuato Silver has signed a binding definitive agreement with Great Panther Mining to acquire all of Great Panther’s Mexican assets through the purchase of Great Panther’s Mexican subsidiary, Minera Mexicana Rosario, including the producing Topia mine and production facility, the San Ignacio mine, the Guanajuato Mine Complex and the Cata processing plant. With that, Guanajuato Silver’s operations will expand from two mines and one production facility to five mines and three production facilities. The deal comes at a cost of $14.7 million dollars US, in the form of $6.7M in Gsilver shares and $8M in cash. In 2021, Topia produced over 1.1M silver equivalent ounces while production at the Valnciana and San Ignacio mines and Cata processing plant was just over 1 million silver equivalent ounces. However, GSilver is not treating these estimates as current mineral resources as a qualified person on behalf of GSilver has not done sufficient work to classify these estimates as current mineral resources. Guanajuato Silver trades on the TSX V with GSVR. News Release

Adriatic Metals published recent drill results from Rupice Northwest, which is an extension to the existing orebody. The company continues to intercept thick, massive sulphide mineralization up-dip from previous intersections. Results reported include d30.9 meters of 851 g/t silver equivalent, 24.5 meters of 993 g/t silver equivalent and 23 meters of 831 g/t silver equivalent. Additional assays are pending from recently completed holes that have intercepted massive sulphide mineralisation within the extension area. The resource definition and in-fill drilling programs are also progressing well which, when completed, will lead to an updated Mineral Resource Estimate planned for Q4 2022. All three drill rigs will then be available to focus on additional Rupice Northwest and other planned exploration targets within close proximity to the Rupice orebody With the new drilling contractor delivering results with significantly improved advance rates, the Company plans to complete approximately 22,000m of exploration and infill drilling by the end of the year, with a continued focus on adding to the existing 10 years of mine life by systematically exploring around Rupice and the greater Vares project. Adriatic Metals trades on the ASX with ADT and on the OTCQX with ADMLF. News Release

Snowline Gold says it has encountered 415 m of nearly continuous mineralization downhole from bedrock surface in V-22-007 at its Rogue Project's Valley Zone in Canada's Yukon Territory. Hole V-22-007 was a 340 m step-out along-strike to the southeast of 2021 drill hole V-21-003 (which intersected 168.65 m averaging 1.25 g/t Au from bedrock surface). A second drill rig mobilized to site and has completed drilling V-22-008, which intersected sheeted quartz veins 460 m from the nearest hole to date, further expanding the footprint of known mineralization at Valley. Assays for this and all holes drilled so far in 2022 remain pending. Snowline Gold trades on the CSE with SGD and on the OTCQB with SNWGF. News Release

Cornish Metals reported the  assay results from nine diamond drill holes drilled to test the Trenares Lode target within the United Downs project in Cornwall, England. The Trenares target area is located approximately 300 metres south of the historic, copper-rich, United Mines. Nine drill holes were completed, on three drill sections, for a total of 2,683.55m. Intersects included 2.42m of 2.88% tin and 1.43% zinc, 3.34m of 2.48% zinc and 22 g/t silver, and .9m of 10.3% zinc and 18 g/t silver. The company says the Trenares Target drill programme has been successful in demonstrating the presence of multiple zones of mineralisation in an area of the United Downs project that is underexplored, has never been mined and represents a compelling exploration target. The presence of high-grade tin and zinc warrants further follow-up exploration. The drill programme at United Downs project is now complete, with results pending for a further five holes drilled into the Mount Wellington, UD Lode, and United Mine targets still pending. In addition, eight drill holes for 2,501m were drilled at the Carn Brea South Target, located approximately 2km southeast of South Crofty mine site. Results for these drill holes will be released in due course.

That concludes today’s morning briefing.

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