Morning Briefing: Ivanhoe's Kipushi Financed to Return to Production
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday April 27th.
On Wednesday the gold price drifted sideways overnight, trading between $2008 and $2012 per ounce. But at 7:30 NY time it dropped $8 down to $2,004, suddenly, then shot back up to $2,020 as the Comex opened. Then, mysteriously, gold was pushed off the cliff at the 9:30 a.m. NYSE open in an avalanche of paper selling that took the price down to as low as $1,994, before it bounced to settle at $1999. The Mining Stock Journal said that the U.S. market movements were likely tied to the inverse gyrations in the U.S. dollar index, which plunged nearly 1% overnight before bouncing when gold was smashed. The newsletter added that the trading pattern had official intervention footprints all over it. Silver shadowed the movement of gold, with the Comex bounce taking it up to $25.50 per ounce then back down to test $25. Silver bounced to settle at $25.18 in the afternoon Globex session.
The Mining Stock Journal noted that silver managed once again to hold $25. The mining stocks were swept lower with the metals and the sell-off of the Dow and S&P 500. Some notable exceptions were Aztec Minerals, EMX Royalties, and New Gold, all three of which were nicely green Wednesday. The Mining Stock Journal recommends all three stocks and will be including an update on Aztec, which jumped 16% yesterday, in the next issue of the Mining Stock Journal, the link to which can be found a InvestmentDynamics.com
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…Fireweed Metals.
Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.
And here’s what you need to know this morning….
Ivanhoe Mines signed an off-take and financing term sheet to return the Kipushi zinc-copper-lead-germanium mine to production, with construction on track for first concentrate in the third quarter of 2024. Kipushi will be the world's highest-grade major zinc operation, with an average grade of approximately 36% zinc over the first five years of production. Ivanhoe, local partner Gécamines and Glencore signed a tri-partite off-take and term sheet for a US$250 million financing in two tranches bearing annual interest rate of the Secured Overnight Financing Rate (SOFR) plus 7% repayable in three years with a 24-month grace period. Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) news release
Pan American Silver provided guidance for 2023, including the four producing mines it recently acquired from Yamana Gold, reflecting their contribution for the June, September and December quarters. PanAm said integration is progressing well and is on track to realize $40 to $60 million in annual synergies. It also said that it calculates costs on a by-product basis whereas Yamana reported on a gold equivalent ounces, which is not directly comparable. PanAm is guiding production of 21-23Moz of silver and 870-970koz of gold this year, in addition to some lead, zinc and copper. It also plans to invest $75 to $85 million of project capital. Pan American Silver (NYSE: PAAS) (TSX: PAAS) news release
Cerrado Gold commenced loading ore onto the heap leaching pad at its inaugural heap leach project at Las Calandrias in Santa Cruz, Argentina. The Company expects to commence leaching in the next 7-10 days, with the first gold pour in early June. Las Calandrias project is expected to add 25k ounces per annum of gold production capacity. Las Calandrias is the first of two heap leach projects planned to be initiated this year to grow the overall gold production from Cerrado's Argentinian operations. The second anticipated heap leach at Martinetas, is expected to be constructed later this year and start production in early 2024 adding an additional 20k ounces of production capacity. Cerrado Gold (TSXV:CERT) (OTCQX:CRDOF) news release
Moneta Gold released assay results form fifty-two resource infill and step-out drill holes on the 903 deposit at the Tower Gold project near Timmings, Ontario. The drilling was conducted as part of a 76,000m drilling program, completed last year, and an additional 60,000m currently underway. highlights included 3.3m of 98.35 g/t gold, including 1.8m of 180 g/t. There was also an intersection of 20m of 1.13 g/t and 3m of 6.74 g/t gold. The recent drilling is for resource upgrade and infill of the 4.5 million ounces indicated gold and 8.3 Moz inferred gold mineral resource estimate. Moneta Gold trades on the TSX with ME and on the OTCQX with MEAUF. News Release
Nevada King Gold announced assay results from nine, vertical reverse circulation holes at its Atlanta Gold Mine Project near Las Vegas, Nevada. Holes reported today were drilled north of the Atlanta pit to test the grade and thickness of mineralized fault blocks comprising the Atlanta Mine Fault Zone and the West Atlanta Graben moving northward toward the North Extension Target zone. Highlights included 42.8m grading 5.64 g/t Au including 7.6m grading 28.5 g/t in hole 22. Nevada King Gold (TSXV: NKG) (OTCQX: NKGFF) news release
Yesterday we heard from Jason Kosec of Millennial Precious Metals and who will be sitting in the CEO seat after the merger with Integra Resources. This morning, Millennial reported that at the special meeting of shareholders held yesterday, the shareholders overwhelmingly approved of the proposed arrangement with Integra. Assuming that all approvals are obtained and all conditions precedent are satisfied or waived, Millennial anticipates that closing of the Arrangement will occur on or about May 4, 2023.
And Ian Ball is back in the game. Satori Resources announced that he has been appointed interim President and CEO effective today. Ian will replace Jennifer Boyle, who is continuing with the Company as Executive Vice-President and Director. Most recently Ian was President and CEO of Abitibi Royalties from 2014-2021. Prior to Abitibi Royalties, Ian worked 10.5 years for Rob McEwen, who is Satori’s largest shareholder. Ian was also a co-founder of Apollo Explorations with Rob McEwen, which was acquired by Satori, giving him a high degree of familiarity with the exploration projects. News Release
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