Morning Briefing: Hercules Silver Publish New Silver Assays
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Wednesday February 28th.
Tuesday was groundhog day as, once again, gold rallied vigorously during eastern hemisphere physical gold accumulation trading hours, with the gold price rising from $2040 to as high as $2049. Ritualistically, as soon as Asia closed at 3 a.m. NY time, the gold price was smashed down to as low as $2039, where it settled in the afternoon. Silver similarly shot up overnight to $22.93, May contract basis, but then was monkey-hammered lower when New York assumed control, falling to as low as $22.64 and settling in the afternoon at $22.66. The Mining Stock Journal said that either the hedge funds are getting very short paper gold and silver, which is unlikely based on the last couple of COT reports, or there's an official effort to keep the prices of gold and silver suppressed in advance of an event that triggers a big move higher. From the price management team's perspective, better that move start from an artificially lower level like it did in 2008. The mining stocks closed down from Monday, with GDX down .84%. The Mining Stock Journal noted that the mining stocks won't get traction until the metals break out from their current trading range.
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… Vizsla Silver.
Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 325,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at https://vizslasilvercorp.com/
And here’s what you need to know this morning….
Hercules Silver reported results from shallow holes drilled into the Upper Plate above the new Leviathan porphyry copper discovery on the Hercules Silver Property in Idaho. Results today included hole 17 which extended the high-grade Hercules Adit footwall shoot down plunge, with 11.3 Meters of 1,660 g/t Ag, 0.7% Pb, 1.75% Zn, one of the best silver intercepts on the Property, within an overall 112.2 Meters of 193 g/t Ag, 0.2% Pb, 0.4% Zn. Hole 19 intersected a potentially new mineralized shoot at the hanging wall contact of the Hercules Adit Zone, returning 15.3 Meters of 359 g/t Ag, 0.4% Pb, 0.4% Zn. Planning for the 2024 drill campaign is underway, with the program scheduled to commence when weather conditions permit. Additional details regarding the drill plan will be disclosed as targets are finalized. (TSXV: BIG) (OTCQB: BADEF) News Release
Tinka Resources has updated their preliminary economic assessment for the company’s Ayawilca Project in Peru. The Project now features a smaller, more efficient zinc-silver-lead plant, introduces a separate tin plant for additional revenue and commodity diversification and highlights the development path forward for Ayawilca to become a producing mine. The economics now sits at an After-tax Net Present Value at 8% discount of US$434 million and after-tax Internal Rate of Return of 25.9%. Initial capex comes in at $382M with a payback period of less than 3 years. The study highlights Average annual metal production of 200 million pounds of zinc, 3.26 million pounds of tin, 560,000 ounces of silver and 5.7 million pounds of lead during its 21 year mine life. (TSXV:TK)(OTCQB:TKRFF) News Release
Vista Gold announced it has received the second installment payment of $7M under the royalty agreement between Vista Australia and Wheaton Precious Metals. The Second Installment is part of the $20 million royalty with Wheaton, which will be used to advance Mt Todd and for general corporate purposes. The final installment of $10 million is to be received six months from the date of the first installment provided Vista has commenced a designated drilling program at Mt Todd and satisfied other customary conditions, representations and warranties. (NYSE American and TSX: VGZ) News Release
McEwen Mining reported on drilling results from Stock East which is part of the Fox Complex in the Timmins gold district of Ontario. Drill results reported today include 121.5 gt Au over .4m, 6.5 g/t over 10.2m and 4.5 g/t over 10.4m. The company says Stock East has potential to be a shallow source of near-term revenue during the construction phase of the access ramp at Stock West. Speaking of Stock West, the company also says geological interpretations suggest that two principal structures that plunge to depth, emanating from the historical Stock Mine control the mineralization of Stock West and Stock Main. Resources identified within these structures in 2023 account for most of the 31% increase in the Stock West and Main resource when compared to year end 2022. (NYSE: MUX) (TSX: MUX) News Release
Congratulations to Adriatic Metals. They announced that the first concentrate was produced from the Vares Project in Bosnia and Herzegovina yesterday. The Vares Processing Plant will continue ramping up with campaign processing over the next few months, via the down blending of high-grade stockpiled ore with lower grade stockpiles. The campaign processing is intended to facilitate plant performance optimisation, with processing capacity of approximately 65,000 t per month by Q4. (ASX:ADT, OTCQX:ADMLF)
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