Morning Briefing: Hudbay to Acquire Copper Mountain Mining

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

Today is Thursday April 13th.

Wednesday was March CPI release day, which also means that trading and gold and silver would be volatile, regardless of the outcome of the report. Gold traded lower overnight, falling from $2036 to as low as $2022 per ounce ahead of the release time for the report. When the number was released, 10 minutes after gold trading on the Comex commenced, the price shot up to as high as $2044, as the number was more benign than expected and gave cause to the hope that the Fed would pause its rate hike agenda. But out of the blue, or so it might seem to the uninformed, the paper price management team went into action and smashed the yellow dog back down to as low as $2016 before gold bounced and settled the afternoon session at $2029, up $11 from Tuesday. Silver followed the same price path as gold, only the swings were more exaggerated on a percentage basis. Silver traded down to $25.20 per ounce overnight, shot up to as high as $25.82 after the CPI release, was bashed down to $25.22 and bounced to settle at $25.62, up 43 cents from Tuesday. 

The Mining Stock Journal said the volatility in the metals was accompanied by volatility in the stock market, though the stock market did not experience the paper futures driven cliff-dive endured by the metals. While the stock market closed red for the day, the mining stocks diverged positively and finished in the green, with the GDX rising nearly 1%. The Mining Stock Journal noted that, while the precious metals sector seems to be technically overbought, the sentiment indicators for the most part reflect lack of investor enthusiasm toward the sector. While the newsletter is expecting a corrective pullback, it could rally for a while longer before profit-taking sets in.

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….

Hudbay Minerals says they will acquire all of the issued and outstanding common shares of Copper Mountain Mining. The combination of the two will create the third largest copper producer in Canada with 150,000 tonnes per year of copper being produced. Under the terms of the Arrangement Agreement, each Copper Mountain shareholder will receive 0.381 of a Hudbay common share for each Copper Mountain common share held. The Transaction consideration represents approximately C$2.67 per Copper Mountain common share and a US$439 million equity value based on Hudbay’s closing share price on April 12th. The Transaction consideration represents a 23% premium to Copper Mountain shareholders based Hudbay’s and Copper Mountain’s 10-day volume-weighted-average share prices. Hudbay Trades on the TSX and the NYSE with HBM. Copper Mountain Mining trades on the TSX with CMMC. News Release

NGEx Minerals reported assays from four holes drilled at the Los Helados copper-gold project in Region III, Chile. Most of the new drilling into the Fenix and Alicanto Zones is outside of the current Los Helados Mineral Resource and both zones remain open to expansion. Today’s results included 343.8m of .9% CuEq, 234m of .9% CuEq, 390m of 1.13% and 104m of .69%. Current drilling is focused on defining the geometry and size of the Alicanto and Fenix Zones. The final two holes of the program are underway, supported by a directional drilling crew. NGEx Minerals trades on the TSXV with NGEX. News Release

Vizsla Silver reported results from six new drillholes targeting the southern extension of the Napoleon Vein on its Panuco project in Mexico. Hole 343 returned 4m of 1,085 g/t silver equivalent, including a subinterval of 1m of 3,185 g/t. Hole 344 had 3m of 527 g/t while hole 353 had 1m of 1,401 g/t. Napoleon was the first major discovery of Vizsla at Panuco back in 2020. The company has since expanded that footprint to over two and a half km along strike and hosts a 41.3Moz indicated resource and a 28.7Moz Inferred resource. One rig continues infill drilling at Napoleon while 6 other rigs are at work within the rest of the Panuco package. Vizsla Silver trades on the TSXV and the NYSE with VZLA. News Release

Minera Alamos says completed the documentation necessary to formally proceed with the Cerro de Oro permitting process in Mexico. Cerro de Oro represents the future growth of the Company's gold mining activities and is a major step in transforming the production profile of the Company. The management of the remainder of the permit process will now be handled by the Company's advisors who have successfully permitted multiple mines in Mexico as recently as November 2022. Using a $1,600/oz gold price, CErro de oro offers a life of mine all-in sustaining cost of $873/oz, an after-tax NPV of $150M and an IRR of 111%. Minera Alamos trades on the TSXV with MAI. News Release

Cartier Resources announced a Preliminary Economic Assessment for its Chimo Mine Project near Val-d'Or in Quebec, outlining a 4,500tpd underground operation and 3,000tpd plant to produce an average of 116,900 oz Au at an all-in sustaining cost of US$755/oz with a 9.7-year mine life following an initial capex of C$341M. The project would yield an after-tax NPV of C$388M at a 5% discount rate and an IRR of 20.8%, with a 2.9 years payback and mine life of 9.7 years at a US$1,750/oz gold price. Cartier Resources (TSX-V: ECR) news release

Dakota Gold announced the results from five additional drill holes at its Richmond Hill Gold Project in South Dakota, where drilling has delineated a gold system more than a mile in length. Highlights included 30m grading 5.98 grams/tonne gold in hole 13, which confirms the existence of higher-grade gold mineralization that may be related to preferential structures. Richmond Hill contains six known breccia pipes, four of which are largely untested. The Company has four drills operating. Richmond Hill is 1.5 miles north of Coeur Mining's Wharf Mine which produced 79,768oz last year. Dakota Gold (NYSE American: DC) news release

Amarc Resources reported the completionof its Phase 1 core drilling program at the DUKE porphyry district in central British Columbia. Three drill rigs were deployed during the program completing 11,070 m in 24 core holes. Two rigs focused on further delineating the DUKE Cu-Mo-Ag-Au Deposit, while the third commenced testing the shallow overburden covered and robust 4.7 km2 Induced Polarization ("IP") chargeability anomaly. Amarc and Boliden are now actively planning the Phase 2 exploration works that will commence in early summer, and which will include extensive surface surveys to explore 10 prioritized porphyry Cu deposit targets across the DUKE District. Amarc Resources trades on the TSXV with AHR and on the OTCQB with AXREF. News Release

AbraSilver Resource announced drilling assays from ongoing Phase III exploration at its Diablillos property in Salta, Argentina. Drilling at the JAC zone discovery continues to intersect high-grade silver oxide mineralization, with associated gold in some areas, at shallow depths. Drilling to date has defined oxide mineralization extending 800m along strike, up to 150m wide and extending to a depth of 200m. Highlights included 46.5m grading 185 g/t Ag and 0.50 g/t Au fin hole 14, including 8m at 439.3 g/t Ag and 1.28 g/t Au. AbraSilver Resource (TSX.V:ABRA) (OTC:ABBRF) news release

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