Morning Briefing: Integra Resources shows upside potential at BlackSheep

Welcome to Mining Stock Daily. Standing in for Trevor Hall, I’m Paul Harris.

Today is Thursday October 20th. 

On Wednesday gold and silver, paper gold and silver that is, fell victim to the tight correlation between the directional movement of stock index futures and Comex paper gold and silver. Starting around midnight, stock futures headed south rapidly and paper gold and silver followed suit. The Mining Stock Journal is adamant that this trading action is largely a function of hedge fund momentum trading algorithms, along with large amounts of encouragement from Comex bank market makers, rather than any factor that has any remote attribution to fundamental considerations. Gold was hammered from $1658 per ounce down to $1634 and is trading down another $5, along with S&P 500 futures, as this commentary is being written. Silver was driven down to $18.40 per ounce from $18.75 and is down another 14 cents in early Wednesday evening trading. 

The mining stocks traded lower with everything else Wednesday. The Amex Gold Bugs Index fell 2.9% and the GDX was down 3%. The Mining Stock Journal in its next issue released this afternoon will present an argument that mining stocks are the best relative value opportunity in the stock market. The issue will also have a review of Avino Silver along with updates of several portfolio mining stocks

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 drill results from the DeLamar gold project in Idaho, which it said further demonstrate the resource upside potential of the project in multiple areas. Highlights included 108.8m grading 0.59 grams per tonne gold and 15.01 g/t silver for a 0.79 g/t gold equivalent in hole 138 at DeLamar and 6.86m grading 0.52 g/t Au and 110.58 g/t Ag for a 1.94 g/t AuEq in hole 004 at BlackSheep. Integra said the results continue to demonstrate the strong continuity and grade of the oxide and transitional material destined for the heap leach pad. BlackSheep is a 25 square kilometer greenfield exploration target northwest of DeLamar, where initial results suggest it could contain multiple oxide and transitional gold-silver targets which could complement DeLamar. Generally, the first 40m of material at BlackSheep is oxide and transitional and could be amenable heap leaching. Integra is currently drilling the low-grade, gold-silver stockpiles at DeLamar left behind by previous operators. Integra Resources trades on the TSXV under ITR and on the NYSE American under ITRG. News release

Nouveau Monde Graphite, Mitsui and Panasonic Energy entered into an agreement establishing the terms of the commercial relationship to enable the next development steps of Nouveau Monde’s ore-to-battery-market integrated graphite project in Quebec, Canada. The strategic transaction comprises a non-binding memorandum of understanding on an offtake by Panasonic Energy of a significant portion of Nouveau Monde’s green active anode material over a multi-year term. The graphite junior also entered into unsecured convertible note subscription agreements with Mitsui, Pallinghurst and Investissement Quebec for proceeds of US$50 million. Mitsui will subscribe for $25 million, while Pallinghurst and Investissement Quebec will each subscribe for $12.5 million. Nouveau Monde will use the proceeds to optimise the feasibility study on its phase-2 commercial integrated operations.The three-year convertible notes are comprised of a share convertible at $5 and a warrant exercisable at $5.70 for two years. They will bear interest at the higher of 6% per annum and the 90-day average term secured overnight financing rate, plus 4%. Nouveau Monde aims to produce 100,000 tonnes per year of high-purity graphite concentrate for more than 25 years from an operation in Matawinie, Quebec. A second stage development contemplates an anode plant at Betancour in Quebec able to produce 41,600tpa from 2024. Nouveau Monde Graphite trades on the NYSE under NMG and on the TSXV under NOU. News release

Mawson Gold announced the results of a maiden preliminary economic assessment on its Rajapalot gold-cobalt project in northern Finland. The PEA considers a 1.2 million tonnes per annum underground mining operation with an on-site processing facility to produce gold doré and cobalt concentrate for 9 years. The company said the project would produce 92,000oz/y of gold equivalent at an AISC of US$824/oz, and produce a total of ~700,000oz Au and ~2800t cobalt. The project would yield an after tax net present value of $211 million and an internal rate of return of 27% following a, $191 M initial capex. The operation would be powered by 100% renewable energy. Mawson Gold trades on the TSX under MAW and on the OTC PINK under MWSNF. News release

Minto Metals reported progress from its 30,000m 2022 exploration drilling program at the Minto Mine in Yukon, Canada. Highlights included 20m grading 2.20% Copper in hole 42 at Minto North in a step-out hole. Drilling has extended mineralization about 200m west-northwest of the current resource at Minto North, which the company says is a new lens or extension of the known lenses of the Minto North resource. Minto Metals (TSXV: MNTO) News release

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.