Morning Briefing: Integra Resources Publish PEA for Nevada Projects
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Wednesday June 28th.
Yesterday gold once again was price-spanked on the Comex, this time shortly after the NYSE opened. There was a complete absence of any news that might have inspired short-sellers or hedge funds to unload a payload full of paper gold contracts. The dollar was lower on the day so there were not any pair trading strategies being implemented. Zerohedge attributed the sell-off in the yellow dog to the surprisingly strong new home sales report. But the Mining Stock Journal said that this rationale is seeded in ignorance, if not completely idiotic. The report was released at 10 a.m. NY time while the price ambush on gold began a full 30 minutes before that. Gold actually rallied up to $1940 overnight before getting hit into the London a.m. fix and then bounced back up to $1940. It settled at $1922, down $11 from Monday and down $18 from the high of the day. Silver was stronger than gold, trading up and over $23 to $23.14 before succumbing to the price-action in the gold market. However, silver managed to close 9 cents higher than Monday. The mining stocks traded lower in response to the gold price-smash, with GDX down 1.4%, though it managed to close above the lows of the day. The Mining Stock Journal noted that the Hulbert Gold Newsletter Sentiment Index went negative on Monday. This often signals that bottom in sector is just around the corner
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….
Integra Resources announced results for the maiden preliminary economic assessment and updated resource estimate for both the Wildcat Project and Mountain View Project in Nevada. Integra says the average annual production of Wildcat & Mountain View and the DeLamar Project on a combined basis is expected to exceed 200kozs of gold equivalent (“AuEq”), demonstrating one of the largest heap leach production profiles among precious metal developers in the Great Basin. At a $1,700 gold price, the PEA shows an After-tax NPV(5%) of US$309.6 million and 36.9% after-tax IRR with a first year initial capex of $115M to begin operations at Wildcat. Wildcat & Mountain View generate combined annual production of ~94koz AuEq from year 1-5 with average annual production of 80koz AuEq over the 13 year Life-of-Mine with a site level cash cost of $882/oz of AuEq. The updated mineral resource estimates at both projects demonstrate growth of 23% at Wildcat and 49% at Mountain view. Wildcat now hosts 746koz Au and 6,438koz Ag (829kozs AuEq) in M&I and 210koz Au and 1,980koz Ag (235kozs AuEq) in Inf. Mountain View hosts 578koz Au and 3,402koz Ag (622kozs AuEq) in M&I and 60koz Au and 244koz Ag (63kozs AuEq) in Inf. (TSXV: ITR; NYSE American: ITRG) News Release
Hot Chili also publishes results of its PEA for the Costa Fuego Copper-Gold Project. Using a base case of $3.85 per lb of copper and $1,750/oz of gold the project has a pre-tax NPV of $1.54B, an IRR of 24%, and a start-up capital cost of $1B for a 3.5 year payback period. The initial mine life sits at 16 years with 1.41 Mt Cu and 718 koz Au produced for total revenue of approximately US$13.52 Billion and total free cash flow of approximately US$3.28 Billion. The company noted there is 30,000m of drilling to come so resource growth is probable. A Prefeasibility study is planned to be released in the second half of next year. (TSXV: HCH; OTCQX: HHLKF) News Release
And this just in, Osisko Gold Royalties announced it has agreed to acquire a 1% copper net smelter return royalty and a 3% gold NSR royalty from Hot Chilli for total cash considerations of $15M. News Release
New Found Gold is back with more drill results from five holes which were completed as part of a follow-up program at the Iceberg discovery, which is located 300m northeast of Keats Main along the Appleton Fault Zone. Today’s results included 30.8 g/t over 7.95m from 60m from surface. 265m to the northeast, step-out driloing intercepted 15.5 g/t Au over 7.55m from 60m below surface. The Iceberg-Iceberg East discovery remains open in all directions and drilling is ongoing to expand along strike and to depth with several intervals currently pending assay results. (TSX-V: NFG, NYSE-A: NFGC) News Release
Solaris Resources reported assay results from a series of holes aimed at growing the ‘Indicative Starter Pit’ within the Warintza Central zone at its Warintza Project in Ecuador. Recent drilling has expanded the Northeast Extension zone to the north-northeast where further step-outs are planned, while a 250m step-out on the opposite side of Warintza Central has expanded the zone to the northwest and opened up new potential. Today’s results included 268m of 0.60% CuEq¹ within a broader interval of 830m averaging 0.50% CuEq¹ from 48m depth. And 26m of 0.96% CuEq¹ from near surface and 128m of 0.60% CuEq¹ within a broader interval, extending the zone to the northeast where it remains open. Additional assays are expected soon from drilling targeting further growth at Warintza East, follow-up drilling at the recent high-grade Warintza Southeast discovery and the new Patrimonio discovery. (TSX: SLS; OTCQB: SLSSF) News Release
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