Morning Briefing: Lumina Gold Receives $300M Streaming Deal from Wheaton

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

Today is Wednesday May 17th. 

Yesterday gold was taken below $2000 per ounce in two stages. The first price hit occurred as the LBMA was opening up for business and Asia was closing, taking the price from $2023 to as low as $2007 before a small bounce. The second and more violent price hit occurred after a quickie price pop when the Comex opened followed by a near vertical sell-off right after the Comex opened that took gold down in paper trading from $2020 to as low as $1990 before the yellow metal settled for nap time at $2022. Silver also was taken down hard but its price path was much more erratic. After crossing midnight at $24.24 per ounce, a sell-off commenced that took the price down from $24.20 to as low as $23.68. Silver then yo-yo'd back up to $24.25 before it followed gold off the cliff in the Comex paper market, getting slammed down to $23.81 before bouncing a bit and settling at $23.90. 

The Mining Stock Journal commented that, per the Commitment of Traders report, the managed money segment was very net long paper gold and silver. Offsetting this is a massively large net short position assumed by the bullion banks. In all likelihood the bullion banks are taking pot shots at targeted technical levels in an effort to trigger CTA and hedge fund selling, enabling the banks to book big profits on their shorts. This means there could be some more downside pain ahead but that downside will lead to an oversold condition and likely fire up the next big move higher. No pain, no gain. The mining stocks were hit hard along with the metals. The GDX was down 2.6% while the larger cap stocks in the Amex Gold Bugs index were down over 3%.

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….

Calibre Mining announced results from its from its drill program at the Talavera mine, now known as the Talavera extension. The extension is located within the Limon Mine Complex 3km from the Limon processing plant. Today’s results included 10.22 g/t Au over 4.2 metres including 15.25 g/t Au over 2.0 metres; 15.46 g/t Au over 6.7 metres including 18.09 g/t Au over 5.7 metres; 10.58 g/t Au over 7.9 metres including 15.18 g/t Au over 2.9 metres. All these intervals came from Hole LIM-22-4688. Talavera is a former underground mining area with past production, during the 1990s, of approximately 800,000 ounces of high grade, low sulphidation gold and has the potential for resource expansion on parallel veins. Calibre Mining trades on the TSX with CXB and on the OTCQX with CXBMF. News Release

GoGold Resources released a Preliminary Economic Assessment on its Los Ricos North Project in Jalisco, Mexico. GoGold outlined a 13-year mine life to produce 8.8Moz AgEq oz in years one through twelve and 68Moz silver, 221,700oz gold, 22.8Mlb copper, 144.1Mlb lead and 242.2Mlb zinc, or 110.3Moz silver equivalent ounces over 13 years at an all in sustaining cost of $9.68/oz AgEq following an initial capital cost of US$221 million and expansion capital of $137 million. The project would yield a base case after-Tax NPV of $413 Million at a 5% discount rate and an IRR of 29%, an a base case silver price of US$23/oz and gold of US$1,800/oz. GoGold has a 2021 PEA on Los Ricos South where an updated Resource Estimate is expected to follow this summer. GoGold Resources (TSX: GGD) (OTCQX: GLGDF) News Release

Lumina Gold entered into a US$300M gold streaming deal with Wheaton Precious Metals for its Cangrejos gold-copper project in El Oro, Ecuador. The Stream initially represents 6.6% of the payable gold produced from the Project until 700,000 ounces have been delivered, at which point it will reduce to 4.4% of payable gold production. Wheaton will pay 18% of the spot price for the first 700,000 ounces and 22% thereafter. Lumina will receive an initial US$48 million of pre-construction funding and $252 million of construction funding. This will form part of the $1 billion of required construction capital. Cangrejos is expected to become one of the largest gold producers in the world once built with production over three decades. Lumina Gold (TSXV: LUM) (OTCQX: LMGDF) News Release

IAMGOLD obtained a US$400 million five-year secured loan to add to its balance sheet during the construction, commissioning and ramp-up of the Côté gold project in Ontario, Canada. The five-year loan will bear interest at SOFR + 8.25% and will be secured by a second ranking lien on all IAMGOLD’s assets. The new loan increases IAMGOLD’s debt to more than $1 billion when added to the $652.9 million it held at the end of the March quarter. The loan means IAMGOLD’s $490 million revolving credit facility is now expected to remain almost fully undrawn. Côté is due to produce 365,000ozpa, with construction 79.8% complete as of the end of March. IAMGOLD has invested $1.37 billion since the commencement of construction. IAMGOLD (NYSE: IAG) (TSX: IMG) news release

Brixton Metals says drilling at its Thorn Project in the Golden Triangle of British Columbia has commenced. The 2023 program will focus on drilling the Camp Creek Copper Porphyry Target and the Trapper Gold Target. The two targets form an 8km mineralization trend. Additionally, plans are to drill-ready high priority copper targets on the Thorn Project through geochemical and geophysical surveys. The 2023 drill program at the Camp Creek porphyry target encompasses two principal objectives: the foremost is to intersect the high-grade part of this extensive mineralized system, and secondly, to further expand mineralization laterally with large step-out holes. Drilling is currently underway with two drills set-up at the Camp Creek target. (TSX-V: BBB, OTCQB: BBBXF) News Release

American Pacific Mining has closed its acquisition of Clearview Gold issuing an aggregate of 11,500,000 shares at a deemed price of $0.34 per share and also paid $200,000 cash. Additionally, Clearviews largest shareholder NewQuest Capital will also receive 4.5m shares. American Pacific will take over three gold projects in Nevada with this acquisition. (CSE: USGD / OTCQX: USGDF) News Release

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