Morning Briefing: Magna Mining complets Crean Hill PEA

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

Today is Monday July 31st. 

Friday gold shot up $54 to $1999 per ounce, where it was halted and settled into the close. Silver was more subdued, rising 13 cents to close out the week $24.50 per ounce. The Mining Stock Journal said that it can't find any specific trigger catalysts to send gold up over 50 bucks beyond the fact that all of markets, except the Treasury bond market, seems to have inhaled happy gas thinking that the Fed is done hiking rates. The newsletter said that the weekly Commitment of Traders Report showed that, thru Tuesday, the banks became less net short paper gold and silver and the hedge funds concomitantly repositioned to be less long. That said, the newsletter noted that the real action in Comex paper gold and silver occurred after the Tuesday cut-off date for the COT report and this Friday's report should be more interesting. The mining stocks, after grinding higher for most of last week, were hammered hard on Thursday but closed up 1.2% from Thursday's brutality. The Mining Stock Journal commented that the mining stocks likely are the most undervalued stock sector on the NYSE.

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….

Magna Mining completed a Preliminary Economic Assessment ("PEA") on its Crean Hill Nickel Project in Sudbury, Ontario. The Base Case envisions a combination open pit and underground operation with ore sold to a third-party existing mill in Sudbury. Initial underground mining would be accessed from a new ramp developed from surface, prior to rehabilitation of the existing shaft to access and hoist from the lower elevations. An alternative milling scenario includes a future mill at its Shakespeare Project. The base case would produce 20.1Mt of ore for 15 years including nickel, copper, cobalt, platinum, palladium and gold. The Base Case generates an after tax NPV (8%) of US$230.4 million, with an IRR of 23.4%. The Alternative Processing case would process 28.2Mt over 19 years and generates an after-tax NPV of $516.1 million, with an IRR of 38.4% based on metal prices of US$ 9.50/lb nickel, US$ 3.50/lb copper, US$ 22.00/lb cobalt, US$ 1000/oz platinum, US$ 1800/oz Palladium, US$ 1700/oz gold. Magna Mining (TSXV: NICU) (OTCQB: MGMNF) news release

Glencore International has agreed with Pan American Silver (NYSE: PAAS, TSX: PAAS) to acquire the 56.25% stake in the MARA project in Catamarca, Argentina for US$475 million in cash upon and a Net Smelter Return royalty of 0.75% on copper. Glencore acquired Newmont’s 18.75% stake in October 2022, bringing its shareholding to 43.75%. while Pan American acquired its 56.25% stake as part of its acquisition of Yamana in March. MARA hosts proven and probable mineral reserves of 1.1Bt containing 5.4Mt of copper and 7.4Moz, and an estimated 27-year mine life. It is expected to produce more than 200,000tpa of copper during its first full 10 years of production. Glencore trades on the LSE under GLEN while Pan American Silver (NYSE and TSX under PAAS.

Patriot Battery Metals announced a maiden resource estimate for the CV5 Spodumene Pegmatite at its Corvette Property in the James Bay region of Quebec, establishing it as the largest lithium pegmatite mineral resource in the Americas and 8th largest globally, with a resource of 109.2 Mt at 1.42% Li2O and 160 ppm Ta2O5 inferred, at a cut-off grade of 0.40% Li2O, for a total of 3,835,000 t contained lithium carbonate equivalent (“LCE”). CV5 is a single, continuous, principal spodumene pegmatite body ranging in true thickness from ~8 m to upwards of ~130 m, extending over a strike length of 3.7 km and flanked by multiple subordinate lenses. A resource on CV13 is planned for 2024. Patriot Battery Metals (TSX-V: PMET)) (OTCQX: PMETF) news release

Excelsior Mining entered into an Option Agreement with Rio Tinto’s Nuton to further evaluate the use of Nuton™ copper heap leaching technologies at Excelsior's Johnson Camp mine in Arizona. Excelsior remains the operator and Nuton funds Excelsior's costs associated with a two-stage work program at Johnson Camp. Nuton will provide a US$3 million pre-payment to Excelsior for Stage 1 costs and a payment of US$2 million for an exclusive option to form a joint venture with Excelsior over the Johnson Camp Mine after the completion of Stage 2. Nuton has a portfolio of advanced copper heap leaching technologies targeted at primary sulfide minerals. The Stage 1 work program is expected to commence in August and take 6 to 9 months to complete. Based on the results, Nuton has the option to proceed to Stage 2, which is anticipated to take up to five years and result in full scale commercial production at Johnson Camp. After the completion of Stage 2, Nuton will have the right to form a joint venture on Johnson Camp whereby Nuton will hold an initial 49% and Excelsior an initial 51%. Excelsior Mining (TSX: MIN) (OTCQB: EXMGF) news release

Provenance Gold reported an intercept of 114m grading 3.1 grams per ton gold including 16.8m grading 13 gpt in hole 07 at Eldorado in Oregon. The company said the newly found high grade mineralization is in and below the historically projected gold volume and suggests future drilling could substantially increase the gold volume. Provenance Gold (CSE: PAU) (OTCQB: PVGDF) new release

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