Morning Briefing: Millennial Precious Metals Drill 1.48 g/t Au over 185.5m
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Thursday, May 12th
After getting pushed down to $1830 per ounce in Tuesday evening trading, gold started higher late that night and ran to as high as $1853 before it was rammed lower at the Comex open. However, despite the sharp sell-off in the market, gold shot up from $1834 to as high as $1858 before trading sideways between $1850 and $1854 for the rest of Wednesday. The Mining Stock Journal said that Indian data showed a healthy level of import demand, which is probably why the gold price rallied starting late Tuesday night. Data also showed that demand was stirring in China on Wednesday. Silver also rallied strongly overnight, running from $21.20 per ounce to as high as $21.90 after the obligatory price smash at the Comex open followed by a sharp spike up when the stock market opened. Silver, however, succumbed to the pressure of the stock market drawdown, selling off down to $21.50 before settling at $21.55.
The Mining Stock Journal was encouraged by the action in the metals on Wednesday, as they held up well considering the bloodbath in the stock market. The mining stocks, ostensibly responding to the relative strength in the metals, managed to close just barely red. The Mining Stock Journal commented that, at some point, as happened in 2008, it expects the precious metals sector to diverge positively in a major way from the rest of the stock market. Speaking of mining stocks, the next issue of the Mining Stock Journal will be released this afternoon and features a mid-cap producer that has been irrationally dumped but that the Mining Stock Journal believes will outperform in the next upleg. Visit InvestmentResearchDynamics.com to get more information.
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…Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Millennial Precious Metals provided final assay results from the recently completed resource conversion and exploration drill program conducted at its Mountain View project located in Nevada, USA. The Phase 1 drill program at Mountain View consisted of 27 holes totaling ~7,200m with the objective of resource conversion, collecting geotechnical and metallurgical data, validating grade continuity, and extending the mineralization laterally to increase the pit size. Results were highlighted with 1.48 g/t Au over 185.5m, including 3.99 g/t Au over 36.9m from hole 24. This hole was designed as a step out hole to test the continuity and strike extent of the breccia body toward the expected feeder zone. MVCD-0024 extended the breccia body northwest by ~100m. The exact geometry and true width of the breccia body remain unknown due to the limited amount of diamond drilling completed. Millennial Precious Metals trade on the TSX V with MPM and on the OTCQB with MLPMF. News Release
Moneta Gold provided an updated mineral resource estimate for its Tower gold project near Timmins in Ontario, Canada. The consolidated indicated resource now totals 4.27 million ounces and 7.5Moz inferred. The estimate will form the basis of an updated preliminary economic assessment scheduled for completion in June. The new resource is a 70% increase in total contained inferred ounces with the addition of 3.1Moz, and an 8% increase in indicated ounces through the addition of 298,000oz. The grade of underground resources also increased 22% for indicated and 2% for inferred, with no material change in open pit grade. Open pit indicated resources increased 25% to 4.2Moz and inferred 156% to 5.8Moz. The Garrison starter pit now hosts 1.7Moz indicated grading 1.07 grams per tonne. The Westaway open pit contains 1.1Moz inferred grading 2.14g/t. Moneta Gold trades on the TSX under ME and on the OTCQX under MEAUF. News release
Manganese X Energy announced a Preliminary Economic Assessment for its Battery Hill project near Woodstock in New Brunswick, Canada which outlined production of 68,000 tonnes per year of battery-grade high-purity manganese sulphate over a 40-year mine life. The project would yield an after-tax net present value of US$486 million at a 10% discount rate and a 25% internal rate of return with a 2.8-year payback following a capital investment of $350 million. The project also features seven years of stockpile reclaim feed processing following the completion of mining activities. The project is now advancing towards a pilot project, pre-feasibility study and drilling to upgrade and expand manganese resources. Manganese X Energy trades on the TSXV under MN and on the OTCQB under MNXXF. News release
Treasury Metals announced additional drilling results from the Far East and South Syncline at its Goliath Gold Complex in Ontario, Canada. Drilling tested Goliath-style targets based on soil and geophysical anomalies. Highlights included 9m grading 16.9 grams per tonne in hole 616 at Far East which included a sub interval of 30cm grading 502g/t. Following its spring break, the company plans to add a second drill to follow up on its exploration successes on its Goliath and Goldlund properties. Treasury Metals trades on the TSX under TML and on the OTCQX under TSRMF. News release
Collective Mining provided results of channel sample assay results from its Olympus target within the Guayabales project in Colombia. Assay results of chip channel samples taken from veins located within historical, shallow underground workings from Olympus confirm the continuation of the carbonate base metal (“CBM”) sheeted vein system into the southwest portion of the target area with results of 220 g/t gold and 812 g/t silver, 134.73 g/t gold and 598 g/t silver and 88 g/t gold and 409 g/t silver. Collective Mining trades on the TSX V with CNL. News Release
Blackrock Silver commenced a 10,000m drill program on its Tonopah West project located in West Central Nevada along the Walker Lane gold and silver mineral belt following the release of its maiden resource estimate. The program consists of reverse circulation pre-collars with core tails through known mineralized zones. A quarter of the planned drilling will be allocated to step-out and resource expansion drilling and a further 7,500m focused on drilling out high-grade structures internal to the resource area. Blackrock Silver trades on the TSX V with BRC. News Release
That concludes today’s morning briefing.
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